Amazon Online Retail Sales Surged 11% In Second Quarter, Ahead Of Amazon Prime Day

usncan 2025-08-02

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📝 usncan Note: Amazon Online Retail Sales Surged 11% In Second Quarter, Ahead Of Amazon Prime Day

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Topline

Online shoppers came out in full force to power 11% growth in Amazon online store sales, its largest reporting segment, and its second-largest, third-party seller services, advanced 11% in the second quarter ended June 30, all before the big Amazon Prime Day four-day sales event.

Amazon Prime delivery person in van sorting packages, Queens, New York. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)

UCG/Universal Images Group via Getty Images

Key Facts

Amazon total net revenues blew past estimates to reach $167.7 billion, up 13%, and net income rose 35% to $18.2 billion, yet investors were spooked by modest third-quarter earnings guidance and increased cloud and AI competition from Microsoft and Google, causing Amazon shares to slide 8% by week’s end, according to CNBC.

Amazon Web Services, its business-facing cloud segment, was the fastest-growing unit, up 17% to $30.9 billion, though growth slowed from 19% second quarter 2024 and lagged behind Microsoft Azure and Google Cloud, both of which reported growth over 30% this year.

On the consumer side of business, Amazon’s online store exceeded Wall Street’s $59 billion estimates to reach $61.5 billion and grew more than twice as fast as last year’s second quarter when online stores advanced by 5%.

Services to its over two million third-party marketplace sellers bettered expectations to reach $40.3 billion, though it grew at about the same pace as last year’s second quarter.

Advertising services, an important profit driver, reached $15.7 billion, up 23% over previous year, and subscription services grew 12% to $12.2 billion.

Third quarter 2025 guidance is for net sales to reach between $174.0 billion and $179.5 billion, a 10% to 13% increase, though operating income is expected to range between $15.5 billion and $20.5 billion, compared to $17.4 billion last year.

Crucial Quote

“There continues to be a lot of noise about the impact that tariffs will have on retail prices and consumption. Much of it thus far has been wrong and misreported,” CEO Andy Jassy said during the earnings call. He added, “Through the first half of the year, we haven’t yet seen diminishing demand nor prices meaningfully appreciating.”

Key Background

Amazon’s online retail sales increase bettered the industry’s 6% non-store sales growth in the second quarter. Second-quarter performance is particularly noteworthy because it doesn’t include revenues generated during this year’s Prime Day event held July 8-11, 2025. By comparison, second- quarter online revenues this year came in a shade higher than the $61.4 billion generated during last year’s third quarter when Prime Day was held. Amazon also reported that Prime membership signups during the three weeks before this year’s Prime Day broke records, as did the number of items sold in advance. All of which bodes well for a significant increase over last year’s third quarter online store revenues.

New Brands, New Customer Services

The long-awaited return of Nike products to Amazon gave this quarter’s online sales a boost. Also generating greater customer engagement was the launch of new luxury brands on the platform, including Aveda, Marc Jacobs fragrances, Aveda, Origins and Milk Makeup. In addition, the Saks on Amazon platform added Dolce & Gabbana, Etro, Stella McCartney, Rosetta Getty, and La Prairie this quarter. The Amazon Essentials product line offering everyday low prices continues to gain new adherents and now represents one out of every three units sold. Amazon Pharmacy has advanced 50% year over year. In a new pilot Perishables service for customers ordering other items for same day delivery, it reported “strong customer adoption” with 20% of customers returning multiple times in their first month. It is also leaning into faster delivery by expanding same-day and next-day delivery to millions of U.S. customers in 4,000 smaller cities, towns and rural communities by the end of 2025.

What To Watch For

Tariff’s impact on Amazon retail prices remain to be seen, as Jassy said, “It’s impossible to know what will happen.” He gave no hint about how prices might be affected once Amazon’s advanced inventory is depleted, nor did he reveal how the company or its third-party sellers would deal with prices as costs go up. However, he did state that no matter what happens, Amazon’s prices are likely to be lower to consumers “on the items they care about.”