You must be aware that the e-commerce industry is going through one of its toughest phase right now because of the huge boost they saw in the pandemic which led them to overhire and now the economic conditions are such that they are forced to even layoff the employees that were there with them before the pandemic even existed. This is not the case for smaller e-commerce companies but even giants such as Amazon, Walmart, Shopify and others. Talking about the e-commerce industry, it is worth noting that Amazon revealed its Q1 earnings report last night and while its e-commerce business remained flat, it still managed to grow thanks to its cloud business.
Due to the cost-cutting drive that Amazon undertook, its profits have also soared which reveals that its drive is beneficial and this has made the investors happy as well. Amazon revealed that its cloud business as well as its ads business have both grown to offset the lower growth in its e-commerce business. Amazon CEO Andy Jassy said “There’s a lot to like about how our teams are delivering for customers, particularly amidst an uncertain economy,”
Amazon had reported a loss of $3.8bn in the first quarter last year and the analysts as well as market experts expected the same from the company this year as well but the fact that Amazon posted a profit of $3.2bn in Q1 2023 is a huge brownie point for the company and its investors who have finally seen the company reverse or stall its trend of posting losses in the first quarter of every year. It is worth noting that the Q1 earnings report have traditionally been Amazon’s weak point as the company posts impressive figures in the quarters going forward.
It is worth noting that Amazon’s new CEO Andy Jassy has pushed his firm to “improve its performance, winding down some programs, such as its Halo fitness division just this week, halting real estate expansion plans, overhauling its delivery network in the US and announcing thousands of job cuts”. An analyst says that these steps might be turning fruitful for the company after all.
