Amazon had an exceptional end to 2023 despite many experts predicting weak holiday season sales. Good news for the broader e-commerce industry.
Amazon’s fourth-quarter growth was not only better-than-expected but record-breaking, reporting a 14% growth in revenue compared to the same period in 2022.
“$170 billion in revenue and $10.6 billion in profits during the last three months of 2023,” reported Haleluya Hadero of Associated Press News.
Amazon’s performance is excellent news, particularly as many expected the 2023 holiday season to perform poorly, or at least not as well as previous years, due to high inflation and an uncertain economic outlook.
Holiday season sales started early with Amazon’s October Prime Day (‘Prime Big Deal Days’), which boosted Q4 sales and was an early sign that consumers were willing to spend big for the 2023 holiday season.
It’s also important to note that Amazon laid off 27,000 employees in 2023, mirroring the rest of the e-commerce and wider tech industries. Layoffs lowered Amazon’s expenses and likely helped with revenue growth.
Revenue growth also came from Amazon’s cloud computing platform, AWS (Amazon Web Services), where a burgeoning interest in generative AI (Artificial Intelligence) drives profit.
Nevertheless, sales on Amazon’s marketplace show that e-commerce has rebounded from the slump that followed the pandemic and signals continued growth in the industry.
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