On 1st February, Amazon reported a profit of nearly $2 billion, the largest in its history, as the online retailer drew millions of new customers to its Prime fast-shipping club for the holiday season and as changes to U.S. tax law added to its bottom line.
Amazon is using fast shipping, television shows exclusive to its website and forays into new technology, such as its voice-controlled Alexa devices, to attract high-spending Prime members. Amazon even acquired Whole Foods Market for $13.7 billion in 2017, which vastly increased Amazon’s presence as a brick to mortar retailer.
Amazon’s net income had more than doubled to $1.86 billion by the end of December. $789 Million boosts was also received as a profit as a result of the U.S. Republican tax bill passed in December.
The world’s largest online retailer said net income more than doubled to $1.86 billion.
The company’s fast delivery, like its two-hour Prime Now service, helped win over shoppers eager to avoid the crowds of big-box retailers. Prime saw more than 4 million sign-ups in one week alone last quarter, and revenue from subscription fees grew 49 percent to $3.2 billion.
That figure is expected to rise this quarter in part because the company recently raised the fee for month-to-month Prime plans and the advertising and other revenue rose 62 percent to $1.74 billion.
Amazon’s voice aide Alexa, embedded in the company’s Echo speakers and Fire TV players, as well as some cars and house gadgets, has been very successful. Millions of Amazon customers ordered goods by voice with Alexa in the past year.
Amazon is an American electronic commerce and cloud computing company operating out of Seattle, Washington and was founded by Jeff Bezos.
The company was founded in the year 1994 and was operating out a room and serving only as an online bookstore. Since then Amazon has come a long way, with it now being the most valued online retailer due to the many areas in which the company started to deal with.
The later diversification from the online bookstore, amazon.com also started selling video downloads and streaming, MP3 downloads and streaming, audiobook downloads and streaming, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produced consumer electronics like the Kindle and became the largest provider of cloud infrastructure services.