Amazon Net Sales Grow 9% to $137.4 Billion in Fourth Quarter

Amazon grew net sales by 9% in the fourth quarter of 2021. In North America, sales grew 9%, while internationally, net sales fell by 1%. Note that 60% of net sales come from North America; 27% come from international, and 13% come from AWS.

Some of the callouts from the Amazon’s Q4-2021 press release include the following:

“Amazon had its biggest-ever Black Friday to Cyber Monday holiday shopping weekend, with apparel, beauty, home, and toys among the top-selling categories. During the holiday season, third-party sellers—most of which are small and medium-sized businesses—achieved record worldwide sales in Amazon’s store. More than 130,000 third-party sellers worldwide surpassed $100,000 in sales on Amazon, and between Black Friday and Christmas, U.S.-based third-party sellers sold an average of 11,500 products per minute. In addition, Amazon India’s month-long Great Indian Festival sales event was the biggest shopping celebration ever for sellers and brand partners on Amazon.in, with nearly 30,000 sellers surpassing $100,000 in sales.

“Prime members are taking advantage of program benefits in record numbers. In 2021, members in the U.S. received more than 6 billion free deliveries, and over 200 million Prime members worldwide streamed shows and movies.”

Excerpt of Amazon’s Fourth Quarter 2021 press release:

Amazon.com Announces Fourth Quarter Results
February 3, 2022 at 4:01 PM EST

SEATTLE – Feb. 3, 2022– Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2021.

Operating cash flow decreased 30% to $46.3 billion for the trailing twelve months, compared with $66.1 billion for the trailing twelve months ended December 31, 2020.

Free cash flow decreased to an outflow of $9.1 billion for the trailing twelve months, compared with an inflow of $31.0 billion for the trailing twelve months ended December 31, 2020.

Free cash flow less principal repayments of finance leases and financing obligations decreased to an outflow of $20.4 billion for the trailing twelve months, compared with an inflow of $20.3 billion for the trailing twelve months ended December 31, 2020.

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations decreased to an outflow of $14.3 billion for the trailing twelve months, compared with an inflow of $21.4 billion for the trailing twelve months ended December 31, 2020.

Common shares outstanding plus shares underlying stock-based awards totaled 523 million on December 31, 2021, compared with 518 million one year ago.

Fourth Quarter 2021
Net sales increased 9% to $137.4 billion in the fourth quarter, compared with $125.6 billion in fourth quarter 2020. Excluding the $1.3 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 10% compared with fourth quarter 2020.

Operating income decreased to $3.5 billion in the fourth quarter, compared with $6.9 billion in fourth quarter 2020.

Net income increased to $14.3 billion in the fourth quarter, or $27.75 per diluted share, compared with $7.2 billion, or $14.09 per diluted share, in fourth quarter 2020. Fourth quarter 2021 net income includes a pre-tax valuation gain of $11.8 billion included in non-operating income from our common stock investment in Rivian Automotive, Inc., which completed an initial public offering in November.

Full Year 2021
Net sales increased 22% to $469.8 billion, compared with $386.1 billion in 2020. Excluding the $3.8 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 21% compared with 2020.

Operating income increased to $24.9 billion, compared with operating income of $22.9 billion in 2020.

Net income increased $33.4 billion, or $64.81 per diluted share, compared with net income of $21.3 billion, or $41.83 per diluted share, in 2020.

“A big thank you to employees across Amazon who overcame another quarter of COVID-related challenges and delivered for customers this holiday season. Given the extraordinary growth we saw in 2020 when customers predominantly stayed home, and the fact that we’ve continued to grow on top of that in 2021, our Retail teammates have effectively operated in peak mode for almost two years. It’s been a tremendous effort, and I’m appreciative and proud of how hard our teams have worked to serve customers,” said Andy Jassy, Amazon CEO. “As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic. When you combine how we’re staffing and scaling our fulfillment network to bring even faster delivery to more customers, the extraordinary growth of AWS with 40% year-over-year growth (and now a $71 billion revenue run rate), the addition of marquee new entertainment like The Lord of the Rings: The Rings of Power and Thursday Night Football, and a plethora of new capabilities that we’re building in areas like Alexa, Ring, Grocery, Pharmacy, Amazon Care, Kuiper, and Zoox, there’s a lot to look forward to in the months and years ahead.”

See the press release for the full report.

SOURCE: Amazon Q4-2021 Press Release

Ina Steiner

Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She’s a widely cited authority on marketplace selling and is author of “Turn eBay Data Into Dollars” (McGraw-Hill 2006). Her blog was featured in the book, “Blogging Heroes” (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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