Amazon’s Biggest Gift – A Huge Growth Among eCommerce Explosion Arises

Tweet

On July 25, Q2 2013 earnings was released by Amazon that was expected between $14.5 billion to $16.2 billion, involving growth of about 13% and 26% over the second quarter of 2012. One of the best things about Amazon is it doesn’t provide granular detail about its business as it doesn’t want to disclose the ins and outs of its operations in front of investors, analysts and the media. Wall Street expectations is missed by the Seattle-based retailer by taking lose of 2 cents a share on $15.7 billion in revenue in the June quarter. Now, the eye of all Analysts is on Amazon to earn 5 cents a share on $15.73 billion in revenue. Commenting on the Q2 of Amazon for 2013, Brian Pitz, Managing Director and Senior Research Analyst at Jefferies & Company, said “This is now the 7th straight quarter operating income has exceeded the high end of guidance, despite continuing investments.” He is also going to raise price on Amazon to $350, mentioning income and CSOI margins being better-than-expected. With this, we have seen the decline against $16 billion in revenues that are mentioned in Q1 2013. Kindle shipments and higher digital content also sell via will drive Amazon’s outcomes that enhance growth in global e-commerce volumes. In the Q4, twenty-two percent of growth is registered by the company that was chiefly driven by its services segment that saw 45% of increase in sales. Moreover, strong sale also reported in electronics and other general merchandise and we suppose the Q2 to be no different, excluding for the seasonality. In Q1, the company’s margins were improved because of the success of services segment that includes Amazon Web Services business. In order to support online activities, this business provides start-ups and big corporate clients with computers, data centers and bandwidth. In addition, the war between Google, Microsoft and Amazon is ongoing the prices of these services recommends that the company enjoys substantial margins on these services. According to our believe, the negative impact of the costs associated with fulfillment centers will be mitigated by the growing popularity of these services that Amazon is opening to moving fast the delivery of physical goods to customers. For any eCommerce solutions visit here :