Amazon has reported a seven per cent increase in its revenues for its first quarter of 2022, coming in at US $116.4 billion. However, It has recorded a loss of US £3.8 billion for the quarter whereas the same period last year produced a profit of US$ 8.1 billion. The news sparked an immediate drop in its share price, as the online giant warned of more losses to come as it bears some of the brunt of cost increases.
As previously reported it has increased rates to its FBA clients.
“Under current economic pressures, no one’s getting by without some struggle regardless if you’re an online or offline retailer. Even the big players like Amazon are having to look internally and rethink their processes. It’s not enough to be the best in a single commerce dimension. You have to be good at marketing and selling your products or services in the physical, digital, and soon, virtual world. That’s why it’s not all that surprising that Amazon is opening its first in-person clothing store, and Meta is opening its first-ever physical retail shop. Driving sales is all about following consumers, and the truth is, consumers are shopping everywhere.
Amazon will bounce back because it’s Amazon. I’m especially interested to see how its recent announcement to make Prime Delivery available to other retailers will impact its eCommerce business. It provides greater value to both of Amazon’s key target groups – buyers and third-party sellers. Prime members can access Prime benefits on other shopping channels, while sellers get to offer customers better delivery options. But considering many brands and retailers already struggle to manage their product information within their own supply chains, keeping up with Amazon’s requirements for using its fulfilment services won’t be easy. Companies need to get a handle on how their product data flows throughout the commerce ecosystem in order to deliver an Amazon Prime-like experience on their own sites.”
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