3 Takeaways | Why Customers Matter

Amazon just upped the ante for the retail industry once again, saying it is moving fast to evolve its signature two-day free shipping for Prime members into one-day free shipping, Forbes and Apple stated in a report published April 25, 2019.

“This is a big investment,” Brian Olsavsky, Amazon’s chief financial officer, said on a conference call Thursday night, when Amazon reported Q1 earnings more than doubled.

Below, OMS Consulting Group summarized three major takeaways from this publication:

One: Amazon plans to spend an incremental $800 million in Q2 alone—that’s more than one-fifth of its net income in Q1—on this new initiative, with plans to build out the “capacity” the rest of this year, Olsavsky said.

Two: Q1 sales minus currency impact rose 42% for both the subscription service and AWS, which counts customers including Lyft and Volkswagen. Advertising sales, another key growth focus, rose by more than 36%, Amazon's finance chief said.

Three: While representing only 13% of Amazon's total sales, AWS posted a 59% jump in Q1 operating income, to $2.2 billion—half of the company's total.