Big Holiday Season Sales Boosted Amazon’s 4Q15 Earnings
Amazon's 4Q15 Shows Highest Growth Ever, Meets Negative Reaction
Amazon’s holiday season sales
As the so-called “Cyber Monday” turned into Cyber Week in 2015, big retailers such as Wal-Mart Stores (WMT), Target Corporation (TGT), and Best Buy Company (BBY) started their offerings several weeks in advance. Over the past two years, Americans have spent more during Cyber Monday than on Thanksgiving or Black Friday. In fact, revenues generated on Cyber Monday alone have exceeded the revenues generated during Thanksgiving and Black Friday together.
According to the Adobe Digital Market Index, which provides digital marketing and media services to merchants, consumers spent around $8 billion between Thanksgiving and Cyber Monday in 2015, which represents an increase of 15% over 2014.
Around 103 million people shopped online between Thanksgiving and Cyber Monday in 2015. Thanksgiving alone constituted $1.7 billion, and online spending on Black Friday last year increased by 14% over 2014. According to Amazon, the number of active customers on its site worldwide was 304 million in 2015, compared to 270 million in 2014.
The graph above shows how Amazon’s growth has outperformed brick-and-mortar retailers over the past few years. Amazon constitutes 11.5% of the First Trust Dow Jones Internet Index Fund (FDN).
Amazon’s Prime Now service
One of the most important services from Amazon (AMZN) is its Prime Now offering, which caters to last-minute shoppers and includes a one-hour delivery service available only to Amazon’s Prime members. During Christmas and the New Year, customers usually head to a physical retailer like Best Buy (BBY) or Wal-Mart (WMT) to make last-minute purchases for gifts, but Amazon has been aiming to lure these customers to its business through rapid delivery.
For related analysis, check out Market Realist’s e-Commerce page.
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