Amazon's marketplace business boomed during the holidays - Business Insider

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One of Amazon's most overlooked business just crushed another stellar quarter, and helped pump up profit margins

Amazon, under CEO Jeff Bezos, has developed a thriving marketplace business where it sells and ships products on behalf of other companies.simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

Company officials attributed the revenue rise in part to growing numbers of companies relying on Amazon to warehouse and ship their products and increasing numbers participating in its one-day shipping program.Amazon's oft-overlooked marketplace business continued to boom during the holidays. Amazon announced last spring that it would cut its standard shipping offering for members of its Prime subscription service from two days to one day. Since then, a growing number of its third-party merchant partners have begun to participate in its one-day shipping program, Brian Olsavsky, Amazon's chief financial officer, said on a conference call with analysts and investors on Thursday. That helped to boost the company's marketplace revenue, he said.

AWS grew slightly faster than Amazon's marketplace business in the fourth quarter, increasing sales 34% from the year-earlier period. And Pachter estimates that the cloud-computing business' gross margin is slightly higher than that of its third-party services business.

 

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I didn’t realize business insider is paywalled now or I’m missing something. I think this is a bad move. I would politely recommend they focus on volume and repetitive growth over margin given their relative market position as perceived by me

Tesla just crushed their quarterly earnings too.

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