Amazon’s Diwali sales off to a good start

Amazon posted very strong sales during its Prime Day event held in the country in August and its ongoing Diwali sales were also off to a good start.

The US-based online retailer posted a 37 per cent YoY growth in international sales to $25.2 billion in the quarter ended September 30, while profits from the international segment shot up to $407 million.

In comparison, Amazon’s international sales in the third quarter of 2019 stood at $18.3 billion on a loss of $386 million. Olsavsky said high volumes and leverage in markets like the UK and Germany were creating profits in the international segment ahead of schedule.

He added that investment in its international business, including in India, should get back to previous levels once the pandemic subsides.

Its international business has turned profitable only after the Covid-19 pandemic, having made a rare operating profit of $345 million in the second quarter.

Overall, Amazon reported record sales in the three-month period, with revenue growing by 37 per cent to $96.2 billion and profit almost trebling to $6.3 billion, on strong sales, resurgence of digital advertising and robust performance of its cloud computing business, Amazon Web Services.