One of Amazon's most overlooked business just crushed another stellar quarter, and helped pump up profit margins
Amazon, under CEO Jeff Bezos, has developed a thriving marketplace business where it sells and ships products on behalf of other companies.simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.
Company officials attributed the revenue rise in part to growing numbers of companies relying on Amazon to warehouse and ship their products and increasing numbers participating in its one-day shipping program.Amazon's oft-overlooked marketplace business continued to boom during the holidays. Amazon announced last spring that it would cut its standard shipping offering for members of its Prime subscription service from two days to one day. Since then, a growing number of its third-party merchant partners have begun to participate in its one-day shipping program, Brian Olsavsky, Amazon's chief financial officer, said on a conference call with analysts and investors on Thursday. That helped to boost the company's marketplace revenue, he said.
AWS grew slightly faster than Amazon's marketplace business in the fourth quarter, increasing sales 34% from the year-earlier period. And Pachter estimates that the cloud-computing business' gross margin is slightly higher than that of its third-party services business.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amazon 4Q earnings preview: Analyst commentary leading up to report - Business InsiderThe report stands to reverse some of the negative sentiment sourced from Amazon's last release, which saw profits fall under analysts' expectations.
Read more »
A spree of hacks leads some to wonder how safe Amazon Ring really is - Business InsiderHackers keep digitally breaking into people's homes and spying on them through popular Amazon doorbell device Ring. And experts say the hacks are likely to continue.
Read more »
Amazon explains its efficiency in one-day shipping - Business InsiderAmazon spent less money than expected on shortening its standard delivery time to one day last quarter — here's how it did it
Read more »
Amazon Shoppers Swear By This Super-Absorbent Dish Rack—and It’s Just $11As much as we love the convenience, there are several items we know better than to clean in the dishwasher. Delicate wine glasses, wooden cutting…
Read more »
Wait, Did Kerry Washington Buy Her Boots on Amazon?Alexa, order these $60 knee-highs
Read more »
UPS doubling down on weekend deliveries as e-commerce booms and Amazon loomsUnited Parcel Service Inc said it aims to more than double weekend deliveries in...
Read more »