Amazon Q2 2021 Earnings - More Of The Same

eCommerce
Written By Rick Watson

Amazon Q2 earnings. Do people really think the sky is falling on eCommerce? Or did they just comp the craziest quarter ever?

  • My favorite "Other" revenue is up 84% - that is their ad business growth. Amazon coming for everyone folks. Amazon's ad business will one day be bigger than the rest of Amazon's business, combined. Watch what that means.

  • Amazon fulfilled unit volume (items coming out of their facilities) doubled in past 2 years. Same for delivered parcels (AMZL).

  • Amazon - Year on Year growth in capex and leases is 74%. Most is fulfillment-related.

  • Biggest issue Amazon fulfillment is solving now? Space and space constraints in facilities and in the network. They are investing as fast as they can manage. I can't think of another major carrier doing that.

  • 2-year comp is 25% to 30%. Isn't that what people should care about?

  • Andy doesn't care about these things either ;-) No Jeff, now no Andy.

  • 3P volume up to 56% of Amazon mix.

  • Almost zero mention of the CEO change on the earnings call. Funny right?

  • Expect Jeff to continue to be involved in the "1-way door decisions" meaning decisions that once you make them, you can't go back on.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
Previous

The Importance of Square purchasing AfterPay
Next

What Does BigCommerce Acquiring Feedonomics Mean?