Amazon's profits hit a new high! Freedom of operation may be affected

According to the latest report from Digital Commerce 360, Amazon accounted for more than 40% of the US retail industry last year, and its revenue reached US$221.6 billion in the first half of 2021, an increase of 34.8% over the same period last year. Last year, the figure was US$164.36 billion.

However, Amazon's rapid revenue growth has led to a surge in its profits.

According to the report, Amazon's profit surge is mainly due to several aspects. On the one hand, the unit fulfillment cost is reduced, and on the other hand, the sales share from market sellers continues to grow, accounting for 62%. However, the biggest contributor to Amazon's profit increase is its Web Services (AWS) cloud computing department, which has accounted for more than half of Amazon's net income in recent years, and the figure was 52.6% in the first half of this year.

In addition, Amazon's advertising revenue is also growing. Driven by these factors, Amazon's profits are constantly setting new records. However, Amazon's development path is not as smooth as everyone imagines. Amazon is facing antitrust charges and worker issues from the European Union, India, etc. Recently, the US Federal Trade Commission has also begun investigating Amazon's antitrust issues. The new chairman of the commission said that they have now taken some measures to make it easier to investigate Amazon.

The report said that without government intervention, Amazon's commercial dominance will continue to grow, but its free operation will be affected, its growth rate will be curbed, and it is likely to sell important parts of its business. Recently, Amazon has also appealed against the EU's antitrust fine.

It is understood that in 2020, Amazon accounted for 40.7% of the US retail industry, up 1.9% from the previous year. According to the first quarter and mid-year reports of 2021, its total operating revenues were 108.518 billion yuan and 221.598 billion yuan, respectively. Amazon will release its third-quarter financial report on the 29th of this month. Under the influence of multiple factors such as supply chain and worker shortages, Amazon's third-quarter performance is full of expectations.

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