Amazon just turned in a fairly healthy second quarter earnings with Q2 Sales up 29% to $12.83 Billion. What more interesting is that 4 out of every 10 products sold on Amazon is now sold by a third party retailer rather than Amazon Retail. (Read Scot @ ChannelAdvisor for full analysis).
“Amazon Prime is now the best bargain in the history of shopping” according to Jeff Bezos, who points out that launched with 1 million items, Amazon now has 15 million items eligible for free expedited shipping along with 18,000 movies and TV episodes available for unlimited streaming and the Kindle Owners’ Lending Library of 170,000 books to borrow for free. The cost of Amazon Prime in the US is still $79 per year, the same as when it launched seven years ago.
That’s the type of program which is making Amazon a success, they have an obsession with delivery and whether retailers like it or not it would appear that consumers do. That’s also why Amazon just upped the returns criteria for third party sellers in the UK to 30 days – Amazon say that their customers love the service and Amazon’s sales growth suggests that they’re right.
For a full indepth dive into Amazon’s Q2 financial results check out ChannelAdvisor’s Amazon Strategies blog, as Scot tends to have the best analysis.