Wish suffered a net loss of $60 million in the first quarter, and the growth rate of platforms such as Amazon has also slowed down!

Since the end of April, major cross-border e-commerce platforms have successively released their first-quarter financial reports. The reports show that the revenue of Amazon and Shopify has slowed down, Walmart's revenue has increased but profits have not, and Wish has a net loss of 60 million US dollars.

Today, I will focus on analyzing the first quarter financial report data of these four cross-border e-commerce platforms.

Amazon lost $3.84 billion in the first quarter, its first quarterly loss since 2015

Amazon's financial report showed that its net sales in the first quarter were US$116.4 billion, an increase of 7%, which was a slower growth rate than before, and they reported their first quarterly loss since 2015, with a loss of US$3.84 billion in the first three months of this year.

According to Amazon's financial report, the reason for the slowdown in its growth rate is that the impact of the epidemic on online shopping has decreased, and e-commerce is returning to its normal growth rate.

Walmart's first-quarter revenue increased but profit did not, and its revenue was lower than expected

Walmart (WMT) also recently announced mixed first- quarter results , with revenue reaching $141.57 billion, up 2.4% year-on-year. Net profit was $2.05 billion, down 24.8% year-on-year, and first-quarter revenue was lower than expected.

Walmart is the largest retailer in the United States. Its sales growth has gradually slowed from its peak during the worst period of the epidemic in the United States . In addition, supply chain costs such as food and fuel , as well as rising wage costs have put pressure on Walmart's profitability .

However, due to the continued impact of inflation, commodity prices have been rising, so the company has continued to grow its revenue , but the growth rate is not as fast as expected.

Shopify's revenue growth slowed significantly in the first quarter of 2022 compared to the same period in 2021

As a star platform in the cross-border e-commerce field, Shopify's revenue grew to US$1.2 billion in the first quarter of 2022, an increase of approximately 21% year-on-year. Compared with the company's 110% growth in the first quarter of 2021 , the decline was significant, and Shopify's revenue growth slowed down.

In addition to the impact of the epidemic, another reason for Shopify's slowing revenue growth is that it acquired Deliverr for a high price of US$2.1 billion . Deliverr is a warehousing and logistics company. Shopify officially stated that it acquired it to expand its warehousing and logistics capabilities.

Wish reported a net loss of $60 million in the first quarter and said it is reshaping its brand

Recently, ContextLogic, the parent company of e-commerce platform Wish, also released its financial report for the first quarter of 2022. The financial report shows that in the first quarter of 2022, Wish's core market revenue was US$90 million, ProductBoost revenue was US$14 million, logistics revenue was US$85 million, and net loss was US$60 million.

As the foreign version of Pinduoduo, Wish is planning a transformation to improve the quality of its products and its reputation among consumers. Wish CEO Vijay Talwar said that in just a few months, consumers will be able to see the progress of Wish's transformation, including a doubling of NPS and a reduction in return rates.

By reviewing the first quarter financial reports of cross-border e-commerce platforms, you will find that as the impact of the epidemic on e-commerce platforms has decreased, the growth of e-commerce platforms has returned to its original speed. During the epidemic, the surge in data on e-commerce platforms has gradually decreased, but due to the high penetration rate of e-commerce among consumers during the epidemic, consumers remain enthusiastic about online shopping, so e-commerce platforms still have huge potential.

Amazon Platform

Wish Platform

Financial Report