E-commerce sales are starting to fall for Amazon as the company sees a 4% drop in the second quarter.
Its revenue rose 7% from its last update, now standing at $121.23 billion, higher than analysts’ forecast of $119 billion.
But this increase in revenue was not the result of its online sales, which saw a 4% drop.
Brian Olsavsky, Amazon’s chief financial officer, cannot determine whether ongoing inflation in the United States has anything to do with the drop in sales. “We haven’t seen anything yet. We saw demand increase in the quarter and we had a very strong month of June,” he said.
Amazon has also recently increased the price of its services, such as Amazon Prime, first in the United States and then in Europe. “We reluctantly added this fee in May to offset some of the inflationary pressures we are seeing,” Olsavsky explained. “I don’t want to give you the idea that either of those increases came close to covering our costs.”
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