Amazon’s Profit Doubles By Almost 5.2 Billion–Good for Them; Tough for Competition

Amazon doubled its profit from $2.6 billion to $5.2 billion due to increase in popularity for online shopping during the COVID-19 pandemic. It will continue to improve as long as it progresses consistently.


Rishi Sundaram

Amazon’s sales skyrocket as profit increases two-fold.

Rishi Sundaram, Staff Writer

 In Oct. 2021, Amazon’s profit doubled to $5.2 billion since the start of the COVID-19 pandemic. Amazon also hit an all time high in net worth this month. Since March of 2021, this skyrocket in profit created 175,000 more jobs

The most surprising part of this change in profit is how it happened during a pandemic. Businesses were expected to have a severe decline in profit and revenue, but Amazon did the complete opposite. “Prime membership continues to get better for customers year after year. And customers are responding — more people joined Prime this quarter than ever before,” said Amazon founder and CEO Jeff Bezos. Amazon’s profit will surely continue to rise significantly as time goes on.

Amazon’s revenue also grew from $31.05 billion to $45.9 billion within the second quarter of June, 2020, showing that they were both successful and that success has remained consistent for the past two years. Not only does this help the company, but also the customers who buy products from Amazon. Even though Amazon already produces many products, they will be able to increase production with the mass amount of profit they made.

Amazon will continue to have lots of development in the future including increase of drone usage and more products sold. Since Amazon is a high-selling company and they are very versatile in what they sell, it will be hard for other companies to attract customers. Whether it’s books, utensils, or even keyboards, Amazon has almost everything. This is a very good thing because when someone is in need of something, Amazon has them covered no matter what they need.

With more products to sell, Amazon’s development will also result in attracting more customers and hiring more employees. All these aspects are key to helping any company develop. They are using their products to raise money for both investing in new goods  and hiring more people. This development will hopefully motivate other companies to do the same in terms of increasing their employees, products, and their customers. However, keeping up with the pace of the change will be hard, as Amazon is rapidly improving. 

This growth in Amazon is not only beneficial for them, but also for us as consumers. Customers will be purchasing things from a company that is gaining much more money,  which means that the company will be able to make more products and customers buying will be able to purchase things quicker due to the less chance of an item being out of stock. Also, Amazon will be able to buy higher quality products to sell and make more profit on.

As consumers, we should take Amazon’s huge development into consideration, as it could help our community’s development path to rise. Our community and school will continue to progress because Amazon will be able to increase their products in both quantity and quality. Rock Ridge could try purchasing most of their resources from Amazon now. For example, Amazon will have more money, which means Rock Ridge can use Amazon to buy more equipment  for the school. Amazon buys their products from other companies mostly, sometimes producing their own. Amazon is a company that serves buyers with flexibility to buy their products whenever they want and have them delivered quickly. This can help Rock Ridge because Amazon most likely has school equipment in stock which Rock Ridge could use. So, it’s a win-win situation for both sides.

Even Amazon’s competitors, such as Microsoft, Apple, Walmart, Target,  SpaceX, and Tesla, have not been able to keep up with Amazon. For example, Microsoft’s total revenue in 2021 was $168 billion. In 2021, Amazon’s total revenue was $469.82 billion. Microsoft is one of Amazon’s closest competitors, and it doesn’t even have half of Amazon’s revenue. This is good for Amazon, but bad for other companies, as they will slowly begin to lose customers due to Amazon’s popularity increase, with Amazon’s competitors now having more pressure to improve their company at a consistent rate if they want to catch up to Amazon. 

Since the start of the pandemic, the public’s reliance on online shopping has increased. As an online-based company, Amazon is at an advantage with its competitors, including local stores and malls, might not spend much time developing their online shopping and as a result are less of a threat to the unstoppable company. With Amazon’s other features such as Kindle Books and Prime Video serving to provide entertainment benefits on top of the attractive variety of goods and fast shipping, Amazon will only continue to serve consumers and grow its profit in the future.