Amazon sales increase by 27%

Online retail, logistics and computer giant Amazon has announced that its net sales for 2016 was just over $136 billion, up 27% on the year before.

Operating income for the giant in 2016 was $4.2 billion by comparison to $2.2 billion in 2015. Amazon’s net income was $2.4 billion, a large leap from $596 million in 2016.

It is surmised that the continuing roll out and expansion of the Amazon Prime programme was a driver behind the continued growth.

“Our Prime team’s customer obsession kept them busy in 2016,” said Jeff Bezos, Amazon founder and CEO. “Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015.”

As reported yesterday by Apex Insight, Amazon announced earlier this week that is set to open a centralised air hub at the Cincinnati / Northern Kentucky Airport in Hebron that Amazon claims will support the new dedicated fleet of Prime Air cargo aircraft. It has space for 100 aircraft so many suspect this will form a key hub in the company’s drive into global logistics.

Amazon also announced recently that it will be creating more than 100,000 new, full-time jobs in the US over the next 18 months to support its growth strategy.

If the PR operation at the company spoke as much as those watching one would be able to see its direction of travel in the coming years. Instead there are rumours based on fact and sometimes these rumours come to fruit. What is clear (though unannounced) is that it is driving into global logistics and with its financial firepower this news should give the major players in the business a bit of a jolt.  
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