We’re happy with the results we’re seeing in the Prime program. Prime member membership and retention is still strong. I think that change has been above our expectations positively. And I think the benefit of the program continues to get better and better.
Nonetheless, North American ecommerce sales increased 10.2% year-over-year from $67.6 billion in Q to $74.4 billion this year, while international sales fell about 12% from $30.7 billion to $20.7 billion. Much of the global reduction was due to foreign exchange rates. The company acknowledged inflation-induced cost pressures, especially in the supply chain. Additionally, Prime Day was in the second quarter in 2021 but in the third quarter this year, negating a Q2 sales boost.
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So you’re right, there will be adjustments to that as we move forward into more holiday-level demand. That’s the fast free delivery, that seamless checkout, and free returns on orders that are eligible. It is — right now, the program is available, as you mentioned, invitation-only for merchants that are already using FBA, and it will expand throughout this year as we’ll extend more merchants to invite, participate in the program. It’s — we’re interested in learning and working with FBA sellers that we’ve known and had good trust with but also expanding it. And I think as you think about it, merchants, they obviously have a lot of choices on where they’re going to sell products.
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- And your comment on discounting, we’re not seeing some of the pressures that other people are seeing right now.
- Net income shows the profit remaining after all costs are subtracted from revenue generated from sales.
So on margins in AWS, yes, as you mentioned, it is dropping sequentially. The margin rate is going to fluctuate in this business. Todd is an experienced Analyst with over 21 years of experience as a technology journalist in a wide https://forexarticles.net/an-introduction-to-lean-kanban-software/ variety of tech focused areas. Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
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Operating income decreased to $3.3 billion in the second quarter, compared with $7.7 billion year-over-year. Free cash flow decreased to an outflow of $23.5 billion compared with an inflow of $12.2 billion in 2021. Operating income refers to earnings after expenses excepting the cost of debt, taxes and certain one-off items. Net income shows the profit remaining after all costs are subtracted from revenue generated from sales. And we’re making good progress in Q2 and expect to keep pressing on that in the second half of the year. But we saw strength in the seller results in Q2, as we mentioned on the percentage mix.
- We are relatively indifferent as to whether some customer buys a third-party or first-party product from us.
- We reported an overall net loss of $2 billion in the second quarter.
- And you said that the revenue pattern can be — and the margin on that revenue can fluctuate quite a bit quarter to quarter.
- We expect infrastructure to represent a bit more than half of our total capital investments in 2022.
And as we always remind you, employee annual RSU grants do occur in the second quarter. And as a result, we typically see a step-up in the SBC expense from Q1 to Q2. And we have a long history of empowering and helping merchants. We’ve invested a lot in tools and capabilities and, of course, the delivery capabilities and all the things that go along with that.
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I think the new thing this quarter is additional pressure on the energy electricity rates in our data centers because of the ramp-up in natural gas prices if you’ve seen that. And then the other inflationary factors, well, some of them are coming down slightly. Before we get the questions, I’ll make some comments about our Q2 performance and the outlook for Q3.
Victoria’s Secret expands Amazon assortment to include apparel … – Retail Dive
Victoria’s Secret expands Amazon assortment to include apparel ….
Posted: Tue, 06 Jun 2023 16:33:25 GMT [source]
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But again, we have move things out and capital is coming down in those areas, as we just mentioned. Our guidance also assumes, among other things, that we don’t conclude any additional business acquisitions, restructurings, or legal settlements. It’s not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. Operating expenses grew 12% year-over-year, from $105.3 billion in Q to $118 billion this year.
Net sales are expected to range from $125 billion to $130 billion, or to grow between 13 percent and 17 percent compared with the third quarter of 2021, according to the company’s guidance. The guidance anticipates an unfavorable impact of about 390 basis points from foreign exchange rates. The growth in the line is impacted overall also on the step-up by continued head count.
