Amazon’s revenue grew to $170 billion due to a massive push from online shopping for the fourth quarter of 2023. This is compared to 2022 when it hit $149.2 billion in sales.
It has been hailed a “record-breaking holiday shopping season” for Amazon. In the next three months, Amazon expects net sales of between $138 billion and $143.5 billion.
CNBC reports that Amazon’s CFO Brian Olsavsky told reporters during a briefing that the company will continue to take a “careful approach” to new investments. However, he says 2024 won’t be a “year of efficiency.”
Olsavsky says they continue investing in “new things” and areas where they know it resonates with customers. He says they will invest in areas where they can “do more with less” and concentrate on delivering quality.
Retail spending down
The latest figures released by the Australian Bureau of Statistics (ABS) show that Australian retail turnover fell by nearly 3% (seasonally adjusted) in December 2023. The ABS says this shift in spending reflects the impact of the cost of living pressures. Customers are looking for bargains and taking advantage of online retailers’ discounts.
But why did Amazon’s online orders spike days before Christmas if retail spending slowed down? Could the online shopping retail giant be stealing customers from traditional shop owners?
According to Bloomberg, Amazon captured 29% of the global market ordering in the last two weeks of 2023. Here’s their secret: They sped up their speedy deliveries.
In July 2023, Amazon revamped its delivery strategy by partnering with local businesses skilled in community delivery. Smaller networks mean faster, more cost-effective order delivery by placing products closer to customers in nearby fulfillment centers.
Prioritizing speed
“Customers care a lot about getting their orders delivered quickly,” says Amazon CEO Ady Jassy on LinkedIn. He acknowledges that they spend “much energy and time” to master speedy delivery and be known for it in the industry.
Amazon has set a new personal record by delivering to seven billion Prime members the same day or the next day worldwide. What is the plan for 2024? “We’re working to make deliveries even faster by shortening the travel distance for each package,” promises Jassy.
He says the plan is to expand same-day sites while also ensuring their delivery network reaches even more customers worldwide.
Speed without compromising the environment
Questions have been raised about Amazon packaging, which could be more environmentally friendly.
Commenting on social media, Álvaro M, who previously worked for Amazon in the US, believes there are still shortcomings. “I keep getting small items in big cardboard boxes that sometimes feel unnecessary.”
“I know customers sometimes don’t want others to see their packages, but it could be a nice idea to try if customers can avoid the cardboard box at all.”
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
