Amazon’s net sales increased by 39% to $52.9 billion and operating income rose to $3.0 billion for the second quarter.
Continued focus on Alexa
Amazon continued its focus on Alexa into the second quarter.
Alexa is now compatible with over 13,000 smart home devices from over 2,500 brands, and the Alexa Skills store now offers more than 45,000 skills.
The quarter also saw Alexa moving into to a number of new locations, such as Marriott-owned hotels in the US and the French market.
The Alexa and Echo launch in France offered an all-new Alexa experience built from the ground up for French customers. Amazon also launched Echo Spot in India and Japan, enabling these customers to experience Alexa with a screen for the first time.
Jeff Bezos, Founder and CEO of Amazon, said “We want customers to be able to use Alexa wherever they are. There are now tens of thousands of developers across more than 150 countries building new devices using the Alexa Voice Service, and the number of Alexa-enabled devices has more than tripled in the past year”.
Amazon are planning to launch Alexa and Echo in Italy, Mexico and Spain later this year.
Expanding Prime benefits
Amazon has continued to expand its Prime member benefits internationally this quarter.
Prime launched in Australia, in what Amazon called “the most extensive set of Prime benefits at launch for any country”. Australian customers were offered unlimited free delivery on local and international items, Prime Video, Reading, Twitch Prime and access to exclusive deals.
Furthermore, same-day delivery has launched in select cities in Italy and Spain, Prime Music and Reading was introduced in Italy, Spain and France, whilst Prime Student was introduced in Japan.
The expansion of Prime benefits has helped Amazon extend its global reach, locking more and more shoppers into the Amazon eco-system.
Whole Foods Market highlights
Prime benefits have also launched at US Whole Foods Market stores nationwide, offering Prime members 10% off hundreds of sale items as well as deep discounts on popular products.
Amazon is also continuing to expand its grocery delivery service from Whole Foods Market stores to more than 20 cities in the US. Customers can enjoy ultrafast delivery through Prime Now when they spend over $35.
Since Amazon acquired Whole Foods Market, Prime has essentially become the retailer’s rewards and loyalty programme. This encourages new Prime sign ups and provides Amazon with valuable insight regarding the in-store purchases of its members.
Amazon has forecasted favourable results for Q3.
Net sales are expected to be between $54.0 billion and $57.5 billion. This could be a growth of between 23% and 31% compared with the third quarter of 2017.
Operating income is expected to be between $1.4 billion and $2.4 billion, compared with £347 million in the third quarter of 2017.