February 2, 2023

4 minute read

 

This was one of the less volatile quarters in a while for Amazon as it delivered moderate results amidst a slowing economy, all of which was largely expected.

  • 1P sales decelerated, although did stay in positive territory after adjusting for foreign currency.
  • Meanwhile, Amazon’s 3P segment grew 24% Y/Y, a slight acceleration from the 23% growth a quarter ago.
  • Advertising grew 23% Y/Y compared to the 30% growth it saw last quarter. This is particularly strong performance compared to the Y/Y results at peers like Meta and Google.

Amazon Fresh store expansion paused

While Stratably readers wouldn’t have been surprised, the biggest news from Amazon today was the acknowledgement that Fresh physical stores business has yet to find a differentiated value proposition for the consumer. Amazon is thus going to pause the expansion of its store base until it figures out how to better serve this market.

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