With 1 billion plus items shipped to destinations around the world, the 2016 holiday season has been their best yet. This was revealed by Amazon.com (NASDAQ:AMZN) on Tuesday. The market reacted positively to this news. The stock went up by 1.6 percent in the afternoon trading session.
Amazon’s Sales Growth Boosted by Echo and Dot Devices
Much of this growth is thanks to their Amazon Echo home assistant and the smaller Echo Dot. Jeff Wilke, the Chief Executive of the consumer division said that these two topped the Amazon best-sellers list. In fact, the demand was so high for the Echo and Dot that it was a constant struggle to maintain their stock. “Despite our best efforts and ramped-up production, we still had trouble keeping them in stock”, Jeff said. “We are thrilled that millions of new customers will be introduced to Alexa as a result”, he added.
The sales of Echo devices went up by nine times as compared to the holiday season of last year. However, no comparable sale figure has been released yet, which is natural with Amazon as they typically do not come out with sales figures. But according to estimates, the top online retailer is likely to have sold between 4 million and 5 million devices this year.
Amazon’s voice-controlled assistant has been sold with Alexa. It can be used in many ways to do a lot of tasks such as turning on the Christmas lights, playing music, asking help to prepare cookies or shopping for gifts. According to analysts, Amazon Dash and Alexa are making it easier for shoppers. Their business rivals will be put under additional pressure as they try to bring in web and in-store traffic.
Amazon’s Prime Very Profitable For The Company
The growth of Amazon’s Prime membership is an example of its growing popularity. In fact, Ken Perkins, who is the Retail Metrics President said last week, “Prime customers are spending twice as much as other consumers using Amazon and helping to fuel rapid revenue growth that few retailers with only a fraction of Amazon’s revenues are able to generate”. There are many goodies for Prime members, which is also helping them grow.
The company also revealed that as much as 72 percent of buyers were doing their shopping at the Amazon web store with their mobile devices, so it’s going to be a priority in the coming years. The busiest shopping day this time was December 19.