Amazon records largest ever quarterly profit

Endaba Group

Over the holiday quarter, total revenue growth increased 22% to $35.7bn (24.9bn) and the etailer passed the $100bn sales mark as it continues to dominate the e-commerce market. This was the first time they have reported three consecutive profitable quarters since 2012. Their full year profit was $596m (£415m) for 2015. However, Amazon said its quarterly performance was hindered by operating expenses increase and slow growth in its cloud services business.

According to Conlumnio’s estimates, the e-commerce giant totalled 22.6% of all online retail spending in the last quarter of the year in the US. Amazon’s strategy of reinvesting large portions of its revenue into generating future growth is working, making competitors like Walmart struggle to compete, as they cannot as easily utilise their profit to boost their  online operations. Their Prime function is also key in sustaining customer loyalty.

They have predicted sales of $26.5bn-$29bn during 2016’s first quarter. This would equal a rise of 17-28% year-on-year.