“Third-quarter revenue gained 13% to $143.1 billion”, according to Bloomberg.
Main takes:
1. The company has now 8 different fulfillment centers, compared to one in 2022. This is crazy. Why they have waited so long to do this? Countries like France, Poland, or Romania have at least 3 fulfillment centers given the area served, while the USA is a continent.
Why does this matter? Faster delivery means cheaper service, which means hiring more people to cover the area even faster, which will draw more sales.
Key learning. Customers take into consideration the following (in this order): price, trust, and delivery.
2. The cost of advertising is between 20% – 40%, depending on who you ask. If you apply the 20% of the revenue from ads you will see that they made more money (ie. profit) from ads than from the cloud (AWS).
3. The strategy “Infrastructure-as-a-service” can continue
So, what are Amazon’s top priorities? See the image above.
