Amazon's First Quarter Revenue Goes Up 23%, Still Will Advance Delivery System

There is one online retailer that has it's grip on the industry, and it doesn't appear it is going to let go any time soon. Amazon is doing many things right and continues to impress experts at how its' branding, marketing and services is right in line with what shoppers want. So far this year, the retail giant has posted excellent results, increasing their revenue to 23%.

Internet Retailer discussed the recent Amazon results, as the retailer seeks to improve every facet of its' business. Its' revenue went up to $19.74 billion this year, which is an increase from 22.8% during the same period in 2013. Within that revenue figure, Amazon's net product sales were $15.70 billion and $4.04 billion originated from outside merchant commissions. Some other notable figures included a net income of $108 million in the first quarter, compared to $82 million last year.

"Based on the recent expansion of Amazon Fresh and the launch of Amazon Dash and Amazon Pantry, it is clear Amazon is increasing its focus on building a more robust consumables business, which we think could have broader implications for traditional hardlines retailers like Wal-Mart, Target and even Costco," stated Wells Fargo Securities analysts in the article. Amazon launched Prime Pantry early this year. The service gives Prime customers a 4-cubic foot box to fill up to 45 pounds of items within Amazon's new pantry section. Customers pay a flat fee of only $5.99.

Amazon Dash is an interesting service device for AmazonFresh customers to use for their grocery shopping. Items can be added to their online shopping list via voice commands or bar code scanning. AmazonFresh, which originated in Seattle, has now spread to a small amount of other US cities and there are more cities to come. Wal-Mart is probably the largest retailer competing with Amazon on this front, as it has launched same-day delivery of groceries in US cities as well.

The retailer does desire to make their delivery network better and better. UPS had a negative impact on Amazon's Christmas season last year and shoppers were not pleased with receiving their packages late. Amazon is not wanting this to happen again, therefore, their delivery system has to be efficient. The report mentioned how Amazon was testing a "last-mile" delivery service, in which it will use its' own trucks and drivers to transport products the final distance to their customer destinations. Experts agree that Amazon is pursuing to have their fulfillment centers as close to metro areas as it can.

Recently, Amazon had a discussion in the Forbes article about revamping their delivery network as well, which is what the company expressed it is going to do this year. It did tackle the idea of utilizing a same-day courier to accomplish their same-day delivery initiatives. A same-day courier like A-1 Express has a national footprint to match such a robust online retailer like Amazon. The Miami Courier can optimally perform "last mile" deliveries, even redeliveries and returns. The courier can transport various products, even groceries, within hours. This is what Amazon is looking for, especially with AmazonFresh.

Reference: 4.24.14, Internet Retailer, Thad Reuter, Amazon's revenue increases nearly 23% in Q1