Amazon sales surge 44% amid shift to online

Amazon profits more than tripled in the first quarter of the year, as it reaped the benefits of increased demand for online delivery prompted by the pandemic.

The e-commerce and technology giant’s net income increased to $8.1 billion in the first three months of 2021, driven largely by 44 per cent growth in sales.

Amazon accumulated $108.5 billion worth of sales, compared to $75.5 billion in the same period last year.

The company predicts that second quarter sales will be even higher, estimating that it will draw in between $110 and $116 billion over the coming months.

The results come days after Amazon announced the expansion of its in-grocery delivery service across 5,000 US cities and towns.

The tech company is also expanding Amazon Scout, a fully electric autonomous delivery system.

“As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70 per cent year over year,” said Jeff Bezos, Amazon founder and chief executive. “In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32 per cent year over year.”

He added: “Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re proud to have them in the family.”

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