Amazon's Q2 profit rose sharply, and sales were proportional to advertising

Amazon Q2 earnings release

Second quarter net sales up 7%

Surpassed Wall Street expectations of $119 billion

Sales increased by 10% year-on-year!

Amazon achieved total revenue of US$134.383 billion in the second quarter, a year-on-year increase of 10.85%, exceeding Wall Street's expectations of US$119 billion.

Amazon's operating profit reached US$7.681 billion, far exceeding the market expectation of US$4.72 billion, and its operating profit margin reached 5.7%, higher than the market average expectation of 3.46% .

The company's net profit was US$6.75 billion, a significant increase compared with a loss of US$2.028 billion in the same period last year.

Amazon made a profit in the second quarter, successfully turning losses into profits. This good news greatly increased investors' confidence in Amazon, causing the stock price to rise sharply, with the total market value reaching 1.42 trillion.

The results of this financial report must be successful. In order to plan the development plan, Amazon immediately held a meeting to focus on discussing the future development direction.

During the meeting, Amazon specifically mentioned pricing strategies in order to attract more consumers and increase sales.

Lower prices mean sellers may once again need to make concessions on profits to maintain competitiveness and sales volume.

Amazon strictly controls prices on its platform, and sellers say they are only suffering...

In addition to pricing strategies, plans to expand advertising coverage are also included .

By expanding advertising reach, Amazon is able to promote its products and services to a wider audience, thereby attracting more consumers and increasing sales.

Amazon's second-quarter earnings and stock surge sent positive signals for the company, which showed aggressive growth by holding a conference call focused on pricing strategy and expanding advertising coverage.

These moves will help Amazon stay competitive in a fiercely contested market and further enhance its position in the e-commerce space.

Although sales increased in the second quarter, many sellers found that the increase in sales was often accompanied by a continuous increase in advertising costs. This dilemma made many sellers feel that their blood tank had hit the bottom and they were helpless.

Many sellers said that advertising costs accounted for 40% or even more than 50% of their sales, becoming an insurmountable mountain . One seller even said that if he could control advertising costs to only 6%, his profits would increase hundreds of times.

As an e-commerce giant, Amazon's advertising revenue has always been an important source of finance. However, with the intensification of competition, especially during the peak season, the continuous increase in advertising costs has become a burden for sellers.