Amazon's international branch suffers operational loss | RetailDetail

Amazon's international branch suffers operational loss

Amazon's international branch suffers operational loss

Amazon's international branch has suffered a 60 million dollar net loss (43 million euro) in the past quarter because of huge Chinese investments, mostly because Amazon enlarged its Chinese product range to compete with local giant Alibaba.

Still profitable worldwide

Despite the 60 million dollar net loss in its international branch, Amazon still managed to get a 108 million dollar (78 million euro) net profit, outperforming the same period last year, when it managed 82 million dollars (59 million euro). Amazon has not divulged any China-specific numbers, but its local market share is well below that of its Chinese competitors, like Alibaba, despite having an online Chinese presence for over a decade.

 

Amazon's worldwide turnover rose 23 % in the first quarter, to 19.7 billion dollars (14.2 billion euro), outperforming analysts' expectations by 300 million dollars (210 million euro). That goes to show that turnover growth is not slowing down at all, despite a 20 % turnover growth in 2013's fourth quarter, which is low according to Amazon's standards and which troubled investors.

 

Own delivery service

Amazon is also running an American pilot to see if it can manage a delivery's "last mile", which would mean that the final part of the delivery is outsourced to companies under Amazon's supervision. The try-out is partly a response to the huge delays during the past holiday season, when Amazon was quite helpless when plenty of gifts failed to arrive on time for Christmas.

 

The service would also try to limit delivery costs, as they grab an increasingly larger share of turnover and it would also facilitate same-day deliveries. The United Kingdom already has this service, for the same reason, namely courier services being unable to handle the amount of deliveries. The service still has some issues in the UK, with plenty of reports of wrong addresses, wrong packages, tardy deliveries or no deliveries at all.

Questions or comments? Please feel free to contact the editors


Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.