Amazon Q3 Results: Keep the faith – why Amazon’s investment in deliveries will deliver for investors

International e-delivery experts ParcelHero say Amazon’s increased delivery infrastructure investment is priming it for success

Amazon’s shares slumped 5% in after-hours trading as investors reacted to its Q3 results. Amazon had a 29% increase in sales revenue but earnings per share were just 52 cents rather than the expected 78 cents.

But international e-commerce delivery specialists ParcelHero says that the underlying reason for Amazon’s operating expenses rising a hefty 31.5% to $10.94bn is a healthy one. The rise in no small part is because it is investing in building up its warehouse and delivery infrastructure across the US, the UK and across Europe.

ParcelHero’s Head of Consumer Research David Jinks MILT, is available to supply exclusive written comment or for interview. David is available at david@parcelhero.com or on 07772 055748.

David Jinks says:

• For years, Amazon poured money into establishing the linguistics capacity that underpins its Prime Now 1-hour, Prime Fresh groceries and free next day deliveries. It has secured customer loyalty through its Prime Membership programme which is built around its delivery options. Reinvesting profits in logistics will secure long term growth in Prime membership.

• 20% of Americans are now Prime members, driven by delivery options like Prime Now and Prime Fresh groceries. And Prime Members spend 4.6 times more than non-members with the online giant.

• It is Amazon Logistics that has enabled Amazon to bypass creaking traditional parcel networks such as the Royal Mail and that will deliver success for investors.

• By the end of 2014, Amazon had earned a cumulative net profit of just $1.9 billion in its entire twenty year history as a public company, despite more than $400 billion in sales during that time. That was largely because of continual re-investment in logistics and technology. Overall, Amazon’s investors are now reaping the reward for patience, and should stick with Amazon shares.

ParcelHero’s Head of Consumer Research David Jinks MILT, is available to supply unique written content or for interview. David is available at david@parcelhero.com or on 07772 055748.

For more information please contact David Jinks, Head of PR, on david@parcelhero.com or by phone on 0208 7584962 (07772 055748 out of office hours)

Leading international online courier ParcelHero® strategically partners with the world's leading  logistics companies, including DHL, UPS and DPD, to provide a flexible, cost-effective range of parcel delivery services to over 220 countries worldwide. Huge bulk purchasing power allows ParcelHero® to offer highly competitive pricing with no compromise in service quality.

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