Amazon’s third-quarter sales grew by 37 percent to $96.1 billion. They were boosted by booming online transactions during the coronavirus crisis worldwide, which prevented or discouraged shoppers from purchasing in physical stores. Excluding a $691 million favorable impact from year-over-year changes in foreign exchange rates during the quarter, sales increased by 36 percent as compared to the third quarter of 2019. The operating income increased to $6.2 billion from $3.2 billion in the same quarter last year. The company’s net profit roughly tripled, from $2.1 billion in the third quarter of 2019 to $6.33 billion in the third quarter of 2020.
For the fourth and final quarter, which will coincide with the holiday season, the company expects sales of between $112.0 billion and $121.0 billion, which would represent an increase of between 28 percent and 38 percent as compared to the fourth quarter iof 2019. Operating income is expected to reach a level between $1.0 billion and $4.5 billion, as compared to $3.9 billion in the fourth quarter of 2019.
Meanwhile, the company’s dedicated Swedish platform, Amazon.se has gone live. It offers about 150 million products in 30 categories, with free delivery on orders exceeding 229 Swedish krona (€22.20-$26.10). There is a mix of Swedish and foreign brands.
Amazon says that it has invested billions of dollars in infrastructure and technical services for Swedish vendors, especially the small and medium-size enterprises (SMEs) among them. It has set up listing tools that operate through all seven European Amazon stores, 24/7 online support, and various reports and analytics.
According to Amazon, there are about 1.7 million SMEs worldwide selling through Amazon’s marketplaces at present, with more than 200,000 “entrepreneurs” generating $100,000 in such sales in 2019. The company’s vice president of European expansion, Alex Ootes, claims that “small and medium sized companies selling in Amazon stores created an estimate 1.6 million jobs worldwide.”
A few weeks ago Amazon’s Bäckhammar site, a 91 megawatt renewable energy plant, came online in Western Sweden to power the Amazon Web Services (AWS) data centers in the country and begin feeding 280,000 megawatt hours into the Swedish power grid. The Västernorrland windfarm, rated at 122 megawatts, is under construction and scheduled to begin operating in 2022. These projects follow from Amazon’s Climate Pledge commitments. The company aims to have achieved net zero carbon emissions by 2040, with all operations running on renewable energy by 2025 and half of its shipments emitting no carbon by 2030.