Despite economic concerns, Amazon’s online sales are increasing.

After months of lackluster spending amid a slow economy, Amazon’s e-commerce sales improved in the three months to June.

The increase is the result of an effort by CEO Andy Jassy to make the online shopping giant’s delivery network run faster and more seamlessly, according to the company.

Overall revenues increased 11% year on year to a better-than-expected $134.4 billion (£105.4 billion).

Amazon’s Prime Day in July was its most successful yet, with 375 million products purchased.

The corporation exceeded expert estimates with quarterly profits of $6.7 billion (£5.2 billion), up from a $2 billion deficit the previous year. That was the company’s highest profit in over a year.

Andy Jassy, the company’s CEO, stated that the numbers demonstrated “another strong quarter of progress.”

Despite its reputation for online shopping, Amazon’s financial performance are driven significantly more by components such as its cloud computing business, AWS, and – in recent years – advertising.

According to the report, AWS’s sales have stabilized, gaining 12% year on year as businesses become less concerned about the economy. Advertising revenue increased by 22% year on year.

The report comes as a slew of other data indicates that some of the world’s darkest clouds may be lifting.

According to the company’s management, consumers are still keeping a careful check on their budgets, which have been pinched in many nations as prices grow at the quickest rate in decades.

However, such increases have now begun to cool.

Amazon’s online sales increased 4% year on year from April to June, following no growth at the start of the year.

According to Insider Intelligence’s lead analyst Andrew Lipsman, the improvement in Amazon’s ecommerce sector is a “encouraging sign” for the remainder of the year.

Even its foreign division, which was losing money a year ago, saw a 10% increase in sales.

Since the pandemic’s massive expansion slowed, Amazon has been working hard to maintain its supremacy in online shopping.

Mr. Jassy, who took over as CEO two years ago, has concentrated on cutting costs and improving efficiency, which has resulted in significant job losses and a revamp of the company’s distribution network. Orders are now routed geographically, closer to the customer.

He stated that the company was still making significant investments, notably in artificial intelligence, which is a hot topic on Wall Street, where conversations about the potential for transformation from new advancements have fueled a jump in share prices.

Amazon’s stock price has already increased by almost 50% this year. Following Thursday’s announcement, shares rose more than 7% in after-hours trading.

“As ever, Amazon’s real strength comes from the breadth of its ecosystem,” said Julian Skelly, managing partner of digital consultancy Publicis Sapient, Europe.

“Looking forward, signs of slowing inflation and broader market growth suggest that we can hope for better-than-anticipated performance in the second half of 2023,” Mr Skelly concluded.

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