Amazon One-day Delivery Fuels Sales Boom — and Shipping Ambition
Retail Dive | January 31, 2020
Amazon reported that fourth quarter net product sales rose year over year to $50.5 billion from $44.7 billion. For the full year, net product sales rose to $160.4 billion from $141.9 billion in 2018. Net online store sales in the quarter rose 15% year over year to $45.7 billion from $39.8 billion a year ago, as physical store net sales fell 1% to $4.36 billion, according to a company press release. Third-party seller services rose more than 30% to $17.4 billion from $13.4 billion.
The e-commerce giant's move to deliver more items in one day helped drive sales, executives said. Fulfillment costs in the quarter rose to $12.2 billion from $10 billion a year ago, as those costs for the full year rose to $40.2 billion from $34 billion.
Net income in the quarter rose to $3.3 billion from $3 billion a year ago; for the year, net income rose to $11.6 billion from $10 billion. In a statement, Amazon founder-CEO Jeff Bezos noted the company now has more than 150 million paid Prime members globally. More customers signed up for Prime in the fourth quarter than in any previous one, CFO Brian Olsavsky said on a conference call with analysts.