Online Sales Rise 10% at Amazon in Q3

While most of the focus on Amazon’s third quarter financial report was on Amazon Web Services and other AI topics, the company did report that online sales in the quarter increased 10% over a year ago to $67.4 billion.

The biggest Prime Day in its history helped to drive online sales, as did continued focus on price and speed of delivery, Amazon reported. Total sales for Amazon increased 12%, to $180.2 billion.

In a conference call, executives said they expect a good fourth quarter overall, including a solid performance for the company’s retail business. Amazon is predicting that total fourth quarter revenue will increase between 10% to 12% over the final quarter of 2024, reaching as high as $213 billion.

On the subject of recent layoffs, executives said they had set aside $1.8 billion to cover severance costs. CFO Brain Olsavsky said the bulk of the cuts came in three areas: technology and infrastructure; sales and marketing; and administrative. Earlier this week, Amazon said it was cutting 14,000 corporate employees.

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