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Amazon, which enjoyed substantial revenue growth during the epidemic, has gradually lost the extra boost from online shopping during the epidemic as the epidemic in the United States is almost over.Amazon records $116.4 billion in revenue in first quarter of 2022, which is still a 7% increase compared to the same period last year, but this is already the smallest quarter of revenue growth since 2001, and it’s not the same as the 44% growth at this time last year. Not only that, but Amazon also posted a net loss of $3.8 billion this quarter, its first net loss since 2015.
Amazon blamed its poor performance for several reasons. In addition to the end of the epidemic and people returning to brick-and-mortar stores, the Russian-Ukrainian war and the unfavorable investment in electric car company Rivian (Rivian’s stock price has fallen by 2/3 this year, causing Amazon $7 billion in losses) are also affected. However, Amazon’s worsening situation has already been predicted. In addition to raising Prime’s subscription fee for the first time since 2018, it also charged US sellers an additional one earlier this month in the name of increased wages and increased shipping costs. 5% surcharge.
Amazon CEO Andy Jassy also said that one of the company’s priorities is to improve the “productivity” of logistics centers, no longer pursuing larger logistics centers or more logistics personnel, but focusing on increasing the efficiency of the overall logistics network superior.
Amazon also confirmed that this year’s Prime Day will also be held in July, but did not disclose the exact date.
