Feb 4, 2022

Amazon raises US price for Prime as profits jump

Amazon is raising the price of its Prime service for US customers after reporting record sales and profits. Sales for the last three months of 2021 expanded by 10% year-on-year to $137.4bn. But those gains were driven by growth in areas like its cloud computing division, Amazon Web Services, and advertising, while its e-commerce sales dipped from 2020, when the pandemic propelled blockbuster gains. The firm's profits in the quarter also jumped, to $14.3bn - almost double the prior year. Analysts had been worried about how the firm would fare, after executives warned last year they were seeing higher costs due to supply issues and difficulty hiring workers. It forecast sales growth of 3%-8% in the first three months of 2022."As expected over the holidays, we saw higher costs driven by labour supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron," chief executive Andy Jassy said.

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