Amazon Made $26.9 Billion Profit In 2020, More Than Last 3 Year’s Total

Amazon has announced that it has made more money during the COVID-19 pandemic than it did in the last three years — 2017 to 2019 combined. 

Reuters

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From April 2020 to March 31, 2021, Amazon has managed to earn $26.9 billion in profit. On the other hand, from the year 2017 to 2019, it only made $24.7 billion in profit, according to an Engadget report.  

As per the report released by the e-commerce giant, net sales have increased 44 percent, amounting to $108 billion in the first quarter of 2021, whereas it made only $75.5 billion, same time last year.

Amazon states that it is expecting its operating income for the current quarter to around $4.5 billion and $8 billion. This includes around $1.5 billion in costs related to Covid-19.

Another crucial detail to note here is that this also marks the 78th consecutive quarter of double-digit growth, year over year while also marking the highest growth rate the e-commerce giant has seen since the year 2011. 

A major chunk of this was due to the massive spike in adoption for e-commerce due to the pandemic, shutting down cities and nations around the world. The pandemic also saw some of the largest hirings in Amazon as it recruited over 500,000 employees to take care of the overwhelming demand during the pandemic. 

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It was also during this time, that more people decided to join Prime. The company reported over 200 million paying Prime members as well as a 32 percent revenue growth in the Amazon Web Services (AWS) cloud division where the unit manage to generate revenue of $13.5 billion — nearly 12 percent of Amazon’s total revenue. 

Reuters

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Speaking about AWS’s success, Bezos said in a statement, “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.”

At the end of the last quarter ended, Amazon CEO Jeff Bezos announced that he had decided to step down from his role in 2021 and transition to an executive chairman’s role in Q3.