Amazon could make one improvement to help future earnings results, analyst says

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Improvements to things like delivery times will do very little to move the dial in Amazon’s sales terms, wrote Neil Saunders, managing director at GlobalData. He suggested one thing $AMZN can do to possibly boost future earnings.

Considering all the challenges retailers are currently facing, analysts say Amazon.com Inc.’s results were pretty good, but GlobalData suggests there is something the e-commerce giant can do to possibly give a boost to future quarters.

Amazon’s site has come under scrutiny in the past, with luxury brands showing a reluctance to sell their merchandise there despite being one of the most popular places on the internet. In September 2020, Amazon launched Luxury Stores, with Oscar de la Renta among the brands that participated in the rollout.

Retailers have taken some hard hits in recent weeks as inflation puts the squeeze on consumer shopping habits, supply chain problems have remained persistent and other macro challenges create hurdles for the sector.Read: Best Buy adds to retailer woes, cutting outlook as end of PC boom takes its toll

“Its headcount contracted to 1.5 million from 1.6 million the prior period, after management indicated last quarter it felt it had more headcount than needed given current e-commerce demand,” Forte wrote.

 

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