Amazon product sales climb 20% in Q1

April 28, 2016 03:58 PM Inc., the No. 1 e-retailer in the Internet Retailer 2016 Top 500 Guide, sold $20.58 billion in merchandise in the first quarter, up 20.5% from $17.08 billion a year ago.

At the same time, marketplace sellers accounted for a greater proportion of units sold: 48% in the quarter versus 44% in Q1 2015. Revenue collected from services, which includes commissions paid to Amazon by marketplace sellers, rose nearly 52%, Amazon says.

For the 12 weeks ended March 31, Amazon reported:

  • Net sales of $29.13 billion, a 28.2% increase from $22.72 billion in the same quarter of 2015. Of that revenue, about $20.58 billion stemmed from merchandise Amazon itself sold to consumers, what the e-retailer terms “net product sales”—up 20.5% year over year. The rest, $8.55 billion, came from commissions from outside merchants that sell on Amazon marketplaces, the Amazon Web Services cloud computing service and other smaller revenue sources. Those “net service sales,” as Amazon calls them, were up 51.9% from last year.
  • North American net sales of $17.0 billion, up 26.8% from $13.41 billion. North America accounted for about 58.2% of sales, inclusive of web services sales, compared with 59.0%.
  • International net sales totaling $9.57 billion, up 23.5% from $7.75 billion in 2015. International accounted for about 32.8% of net sales during the first quarter, inclusive of web services sales, compared with 34.1% in Q1 2015. The figures factor in $210 million in unfavorable impact due to changes in foreign exchange rates.
  • Net income of $513 million compared with a net loss of $57 million.

The e-retailer also released sales and spending data by business segment. For the 12 weeks ended March 31:

  • The sale of electronics and other general merchandise grew at similar strength in the United States and abroad. Amazon says North American sales in the segment grew 32% year over year, to $13.51 billion from $10.25 billion, and 31% internationally, to $7.03 billion from $5.378 billion.
  • Sales of books, music and video in North America totaled $3.21 billion, up about 7.0% from $3.0 billion. Internationally, category sales were $2.48 billion, up about 6.8% from $2.32 billion.
  • Spending on marketing increased 33.3% to about $1.44 billion from $1.08 billion in the first quarter of 2015.
  • Spending on technology and content, including fees for licensing content for its Amazon Video service, increased 28.4% to $3.53 billion from $2.75 billion.
  • Spending on fulfillment increased 33.7% to $3.69 billion from $2.76 billion in Q1 2015.
  • Amazon hired more than 14,000 net new full- and part-time employees during the quarter. It says it now has a total of 245,200 employees, up 48.6% from 165,000 a year ago.

Looking ahead, Amazon says it expects net sales in Q2 to fall somewhere in the range of $28.0 billion and $30.5 billion, up 21% to 32% versus Q2 2015.




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