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Amazon is on the rise again showing a growth in Q1 of 43% and profit growth of 125%. The last time Amazon raised the prices of Prime was in March of 2014. Now they’re doing it again, putting the price up in the US to $119. According to the Internet Retailer 2018 Top 1000 Report available at digitalcommerce360.com, Amazon accounted for 30.7% of the top 1.000 online sales in 2017.

Amazon Prime Closeup© Hadrian / Shutterstock.com

As reported by digitalcommerce360, Amazon has released a large amount of information regarding their revenues, sales and changes to Prime services. It seems Amazon is also #1 in the online sales rankings, generating $51.04 billion in revenue in Q1 2018. That’s an increase of 42.9% from the $35.71 billion generated in Q1 2017. Its net income has also more than doubled to $1.63 billion from $724 million.

More Q1 Highlights

Amazon also announced plans to open an 800,000-square foot fulfillment centre in St. Peters, Missouri, near St. Louis. They also announced the top 20 finalists for their second headquarters.

Amazon is also offering Prime Now delivery from Whole Foods in six metropolitan areas, with more on the way. The first Amazon Go cashierless store was opened with reports indicating six more Go stores are on their way. The Prime program, which gives members access to unlimited speedy delivery and a host of other benefits is now boasting 100 million Prime members around the globe.

Alexa Skills

Amazon’s voice-based assistant, Alexa will soon find improvements to her thought processes and language. Alexa skills are add-on capabilities developers write for Alexa that consumers enable from the Alexa Skills Store. More than 40,000 skills are already available.

Context Carryover

What Amazon calls Context Carryover will enable Alexa to better tie verbal requests together. For example, if a user asks Alexa, “How’s the weather in Seattle?,” followed by “How long does it take to get there?,” Alexa will be able to understand that the second question is referring to Seattle.

A Statistical Summary

Here is a summary of the statistics reported by Amazon in the 12 weeks that ended March 31st:

  • Net sales of $51.04 billion, up 42.9% from $35.71 billion in the same quarter of 2017. Of that revenue, about $31.61 billion stemmed from merchandise Amazon itself sold to consumers, what the e-retailer terms “net product sales”—up 33.2% over last year. The rest, $19.44 billion, came from commissions from outside merchants that sell on Amazon marketplaces, the Amazon Web Services cloud computing service and other smaller revenue sources. Those “net service sales,” as Amazon calls them, were up 62.3% from last year.
  • North American net sales of $30.73 billion, up 46.4% from $20.99 billion. North America accounted for about 60% of sales, compared with 59% a year earlier.
  • International net sales totaling $14.88 billion, up 34.5% from $11.06 billion in 2017. International accounted for about 29% of net sales during the first quarter, compared with about 31% in Q1 2017.
  • Amazon Web Services brought in $5.44 billion in revenue, up 48.6% from $3.66 billion a year earlier, accounting for a little more than 10% of net sales.
  • Net income of $1.63 billion compared with $724 million in Q1 2017 and $513 million in Q1 2016.
  • Amazon also released sales and spending data by business segment. For the quarter ended March 31:
  • Spending on marketing increased 40.6% to $2.70 billion from $1.92 billion.
  • Spending on technology and content, including fees for licensing content for its Amazon Video service, increased 40.5% to $6.76 billion from $4.81 billion.
  • Spending on fulfillment increased 65.7% to $7.79 billion from $4.70 billion in Q1 2017.

The Q1 results have exceeded Amazon’s expectations. In a forecast for Q2 2018, Amazon says it expects net sales to be in the range of $51.0 billion and $54.0 billion, up 34% to 42% versus Q2 2017.