Amazon Reports US$113.1 billion in Revenue During 2Q2021
E-commerce giant Amazon showed outstanding results in its latest financial report thanks to the overwhelming growth of online sales during the pandemic and the company’s strategies to meet the demand.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food and other products that helped communities around the world cope with the difficult circumstances of the pandemic. At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,” said Andy Jassy, CEO of Amazon, in the financial results.
Amazon’s 2Q2021 financial results show an overall revenue of US$113.1 billion during the quarter, a 27 percent increase over 2Q2020’s US$88.9 billion. Operating income also increased to US$7.7 billion, a 32.75 percent increase over the US$5.8 billion of the previous year. Net income also experienced a dramatic increase and reached US$7.8 billion, or US$15.12 per diluted share. This is 50 percent from last year’s US$5.2 billion or US$10.30 per diluted share.
In Mexico, the company made great strides to satisfy consumer demands and offer the best service possible to all customers. For that reason, the company made large investments in its logistics department. In Mexico, Amazon logistics has 28 delivery stations located at “strategic points throughout the country, which allows us to meet customers from all 31 states and Mexico City. We also operate eight shipping centers, which are distributed as follows: six in the State of Mexico, one in Jalisco and another in Nuevo Leon,” explained Diego Méndez de la Luz, Director of Operations, Fulfillment and Supply Chain of Amazon Mexico, in an interview with The Logistics World.
Amazon’s strategies to improve customer satisfaction included tracking systems that allowed users to constantly check the status of their orders. Amazon also made significant investments over the previous years and during late 2020, it announced a US$100 million investment in Mexico to strengthen its logistics and delivery times, as reported by MBN. This latter investment would build its capabilities in the Mexico City metropolitan area and create new distribution centers in Monterrey, Guadalajara and the State of Mexico. “The construction of a solid infrastructure network allows the company to stay closer than ever to clients and thanks to that, it is possible to offer fast deliveries,” the e-commerce giant said in a statement.