Retail Leader: Amazon Experiences 40% Increase in Sales Amidst COVID-19

Aug 06, 2020

(Image Source: Getty)

Amazon continues to see an increase in net sales, proving that consumers are still shopping online during the COVID-19 pandemic. Amazon’s net sales increased 40% to $88.9 billion in the second quarter, far surpassing its performance in the second quarter of 2019 at h $63.4 billion

During this time, Amazon increased their grocery delivery capacity by 160% and tripled the pickup locations to provide consumers who did not want to shop in-store with alternatives. This resulted in grocery sales tripling in the second quarter as compared to the same period last year. At the same time, over $4 billion was spent on COVID-19-related costs during the second quarter of this year. This includes personal protective equipment (PPE) and also benefits and bonuses to Amazon’s front-line employees and delivery partners.

“We’ve created over 175,000 new jobs since March and are in the process of bringing 125,000 of these employees into regular, full-time positions. And third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfillment, transportation, and AWS.” – Jeff Bezos, CEO of Amazon 

Nevertheless, like many other retailers, Amazon’s physical stores did experience a 13% drop in sales as compared to the second quarter of 2019.

Source: Amazon Sees Net Sales Increase 40%

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