Last week, Amazon released its financial report for the third quarter of this year. The report shows an amazing fact. Amazon’s growth did not meet the prediction of data institutions for the first time, and the growth began to slow down significantly!

Q3 Amazon’s predicted revenue is US $111.6 billion, while the actual revenue is about US $110.81 billion. Although the difference is not much, only about 1%, this is the first time Amazon has failed to meet the analysts’ predicted revenue after the epidemic. Previously, the quarterly financial reports were very good, exceeding the forecasts of data institutions. When Amazon announced its financial report this time, it mentioned that with the slowdown of the epidemic, consumers are returning to physical stores. Officials have fully taken into account the slowdown of sales growth. Amazon’s revenue growth in the third quarter of this year was only 15%, far lower than 37% lower than that in the same period last year, or even half.

Not only that, Amazon officials also forecast the profits and revenue of Q4 in the next peak season at the end of the year. It should be the highest quarter of revenue, but Amazon actually thinks its profits are about to be cut!

In the fourth quarter, Amazon expects sales to be between $130 billion and $140 billion, an increase of 4% to 12%. Analysts expect revenue to grow 13.2% year-on-year to about $142.1 billion. The problem is later. Amazon expects its operating profit in the fourth quarter to be about $3 billion. This is a direct cut compared with the operating profit of $6.9 billion in the same period last year!

Andy Jassy, the new CEO, said that due to labor shortage, rising employee costs, global supply chain constraints and increased freight and transportation costs, the company expects to bear billions of dollars in additional costs in the consumer business in the fourth quarter. This will be one of the main reasons for cutting profits. Amazon is currently dealing with these ultra-high investment business contents, including expanding the scale of warehouse and logistics personnel, and launching more in-depth cooperation with wharf and truck companies to solve the problems of cargo transportation and unloading.

After a big wave of epidemic dividend, Amazon’s sales finally ushered in a slowdown in growth, but it doesn’t matter, because Amazon already has a new profit growth point – the service revenue of third-party sellers.

The service fee income of third-party sellers soared

According to the financial report, in Q3, Amazon’s service revenue from third parties, including Amazon mall Commission, Amazon advertising, mall subscription fee and logistics fee, totaled more than US $24.25 billion. In addition, the sales of AWS cloud services have reached US $55.9 billion, while the sales of Amazon products in Q3 is only US $54.9 billion. This is the first time in history that the revenue of third-party services has exceeded the product sales!

In the post epidemic era, Amazon’s crazy surge has brought a large number of new sellers to Amazon. The increasing speed of the cake can not catch up with the increasing number of people who divide the cake. This is the fundamental reason why our sellers feel more and more inward after the Amazon epidemic. We are all fighting a price war, benefiting neither consumers nor us. Only the platform is the eternal winner. This financial report fully demonstrates this point.

See, there is no way out to roll desperately. It will only make Amazon earn more and more. Moreover, raising the price and refusing to lower the price does not mean that it can’t sell. Many small and medium-sized sellers can maintain a profit margin of about 15% to 30%. When the profit margin is high, they can make money by doing activities with a discount of 80% or 10%, which can be said to be a very comfortable range. I’m willing to raise the price, but I don’t know how to do it. You can talk to me in private. I’ll give you a free answer! Let’s refuse the inner roll and raise the price to make money!