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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Tuesday, November 2, 2021

Amazon Anticipates Significant Slowdown

Amazon expects its net sales to be between 130 billion and 140 billion US dollars in the fourth quarter of 2021, which would represent growth of between 4% and 12% compared with the fourth quarter of 2020. This guidance anticipates an unfavourable impact of approximately 60 basis points from foreign exchange rates.

Andy Jassy, Amazon CEO, said: "We’ve nearly doubled the size of our fulfilment network since the pandemic began. In the fourth quarter, we expect to incur several billion dollars of additional costs in our consumer business as we manage through labour supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimise the impact on customers and selling partners this holiday season. It’ll be expensive for us in the short term, but it’s the right prioritisation for our customers and partners.”

For the third quarter of 2021, Amazon reported a 15% year-on-year increase in sales to 110.8 billion dollars. Within that figure, sales of AWS rose by almost 39% to 16.1 billion dollars. Source: Amazon statement

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