It’s a great time to be an Amazon executive and, more importantly, an Amazon seller.
With its recent quarterly earnings report, Amazon is officially the third largest company in America, with a market valuation in excess of $685 billion. In comparison, only Apple — with a market valuable of $815 billion — and Google — with a market valuation of $750 billion — are larger American companies than the Washington-based marketplace giant.
Still, Amazon’s growth has been far surpassing its two California-rivals. In the past year alone, Amazon’s stock price has increased by a staggering 21%. To put this in perspective, Apple is facing a year-on-year stock price decrease.
As if Jeff Bezos, Amazon’s CEO, doesn’t have enough to smile about with this news, he recently passed Bill Gates as the richest person in the entire world with a net worth of $116 billion.
Things were not always so rosy for the Washington tech giant. For years, Amazon has reported strong revenue numbers and yet barely managed to pull in a profit. The market was hesitant but patient about this strategy — fearing Amazon’s long-term viability but understanding the company’s vast potential. With this latest earnings report, there may not be any more concerns about the company, especially in its three most vulnerable areas: (1) Retail operating margins in North America; (2) Amazon Web Services; and (3) shipping costs.
With respect to the marketplace giant’s North American retail operating margin, these margins have reached $1.69 billion — more than doubling. This is thanks, in part, to the company’s acquisition of Whole Foods as well as the company’s investments in expanding its network of warehouses finally paying off.
Amazon Web Services is likely the company’s most important area of business and showed even more growth and profits. Throughout the past ten quarters, AWS’s growth had been slowing. Now, however, revenue growth for the division improved from 41.9% to 44.6%, also posting an operating profit growth at 46.2%.
Finally, the company is spending less and less on shipping costs. Despite offering free two-day shipping with its Amazon Prime service, the company has managed to make deals to keep its spending in this category high but reasonable.
This is all great news for Amazon executives and Jeff Bezos, but it also means that it is a great time to be an Amazon seller. If you are an Amazon seller in need of help obtaining a federal trademark registration, to ensure Amazon Brand Registry eligibility, you can contact the professional attorneys at Law Offices of John D. Gugliotta, P.E., Esq., LPA. Our registered trademark attorneys can help you secure the federal registration that you need to benefit from Amazon's Brand Registry! Contact us today here, or call us at (888) 298-8580.
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