Amazon has made a very profitable start to 2025 with no signs of a tariff-related sales slowdown yet and now aims to speed up its deliveries in rural America through $4 billion worth of investments in its logistics network.
The global e-commerce giant increased net sales 9% to $155.7 billion in the January – March first quarter of this year, while operating profit increased to $18.4 billion (up from $15.3 billion in Q1, 2024) and net income increased to $17.1 billion (vs $10.4 billion one year earlier).
Sales outpace shipping costs
The online and other retail businesses generated more than 80% of revenues and about a third of operating profits last quarter. In North America, sales increased 8% year-over-year to $92.9 billion and operating income rose to $5.8 billion, compared with $5.0 billion in first quarter of 2024. International sales increased 5% year-over-year to $33.5 billion (+8% excluding currency effects) and operating income improved slightly to $1.0 billion, compared with $0.9 billion in first quarter 2024.
E-commerce revenue growth was thus broadly in line with the 8% rise in paid units (physical and digital products) last quarter and outpaced the 3% rise in shipping costs, the company’s detailed results showed.
Meanwhile, AWS (19% of sales but 62% of EBIT) increased sales by 17% year-over-year to $29.3 billion, generating operating profit of $11.5 billion, compared with $9.4 billion in first quarter 2024.
Customers stocking up?
