The pandemic hit the our bodies, hearts, and pocketbooks of most Individuals exhausting. However Amazon did simply positive.
Amazon launched its earnings report on Thursday for the primary quarter of 2021. It offers us a transparent image of how Amazon fared through the pandemic.
So how are Amazon’s coffers trying? They’re, frankly, overflowing. In January by March in 2021, it reported internet revenue of $8.1 billion. That brings its whole pandemic earnings to $26.9 billion. As MarketWatch points out, that is 3 times as a lot cash as Amazon made within the earlier three years mixed.
It additionally tripled its earnings from the primary quarter of 2020, when it reported internet revenue of $2.5 billion
Within the name, Amazon executives acknowledged that Amazon clients shopped “with higher frequency and in additional classes through the pandemic.” Amazon additionally added 50 million Prime members within the final yr, for a complete of 200 million, whose $120 annual memberships actually assist its backside line. Its cloud enterprise, AWS, additionally grew, and its worldwide retail operations have been worthwhile for the primary time since 2016.
On Principal Avenue, the story is fully completely different. Based on a report from Fb and the Small Business Roundtable, 22 p.c of small companies within the U.S. have been closed in February — only one p.c shy of the pandemic excessive, 23 p.c, in Might 2020.
And a brand new report from the U.S. Small Business Administration discovered that “the quantity of people that have been self employed and dealing was 20 p.c decrease in April 2020 than in April 2019,” with Asian, Black, and Hispanic folks hit the toughest. Rebuilding has been sluggish going, and the present variety of self-employed people who find themselves working continues to be 3.6 p.c decrease than earlier than the pandemic.
Amazon usually says that it empowers small companies by permitting them to achieve clients by its market. Then once more, Amazon takes a cut of these gross sales, and even copies the products of unbiased sellers once they occur to do particularly effectively. Because the world will get again on its ft, Amazon’s income in all probability will not escape the eye of regulators.