3 ms·

According to:https://www.digitalcommerce360.com/article/amazon-sales/ https://www.digitalcommerce360.com/article/amazon-sales/ "The online retailer’s net incom

According to:https://www.digitalcommerce360.com/article/amazon-sales/ https://www.digitalcommerce360.com/article/amazon-sales/ "The online retailer’s net income shot up 219.8% to $8.107 billion, exceeding the company’s previous record of $7.222 billion set in the fourth quarter of 2020" 8 Billion * 4 / 365 /24 = $3,652,968/hour.

Sebb767 5y ago
To be honest, I expected it to be larger. 4 million is an insanely big pile of money, but it's nothing that will show up in Amazons budget, even if we're talking about an hour or more of downtime.
djrogers 5y ago
That’s net income - gross income is likely an order of magnitude higher.
dreyfan 5y ago
Amazon net sales were $386B in 2020.
- ghshephard 5y ago
  That's total gross revenue for all of Amazon. From: https://www.statista.com/statistics/266288/annual-et-income-of-amazoncom/#:~:text=In%202020%2C%20online%20retail%20platform,than%20386%20billion%20U.S.%20dollars https://www.statista.com/statistics/266288/annual-et-income-.... "In 2020, online retail platform Amazon reported a net income of 21.33 billion U.S. dollars, up from a 11.6 billion U.S. dollar net income in the previous year. During the same fiscal period, the company's revenue amounted to more than 386 billion U.S. dollars."
  - dreyfan 5y ago
    No shit. Nobody cares about net income. They care about how much consumer spend Amazon is losing during the outage. The total number above does indeed include AWS, which should be subtracted since it's not offline, leaving us with ~$340B in 2020.
ternaryoperator 5y ago
Most of Amazon's net income comes from AWS, not their retail sales. This will mostly hurt gross sales, which will have a trickle down effect on net income, of course, but not at the rate you calculated.
- aserafini 5y ago
  Yes they might even save money from this downtime.
- deleted 5y ago
  [deleted]
axaxs 5y ago
Since sales aren't evenly divided hourly, this is misleading. I'd imagine sales are much higher during the 6PM to 12AM EST hours than say, 3AM to 9AM EST hours. This time on a Sunday night could easily be 3 to 4x that much.
- dylan604 5y ago
  And many more sales occur during holidays like Black Friday time frame as well.
mmahemoff 5y ago
It's not like YouTube that would never get those eyeball-hours back. Most customers will return later instead of buying elsewhere.
kristopolous 5y ago
Maybe I'm in the minority but if I wanted to buy something on Amazon and it was down I'd just do something else and then come back later. They wouldn't actually lose my sale.
- sneak 5y ago
  There was something stupid I tried to buy earlier before seeing this (and couldn't), and now I can't remember what it was. Perhaps a keto snack food I thought of? Maybe it will come back to me, maybe it won't.
- linsomniac 5y ago
  For necessity purchases, yes. For impulse purchases, quite possibly no. One of the recommendations to save money is to never buy things the first time you think of buying them. While Amazon is bad for impulse buying, it can also be a tool to reduce it: I'll put things in my cart and just let it sit there, then maybe once a week I'll complete an order. "Save for later" anything I'm still unsure of. I have a lot of things in my "Save for later" that could have been impulse purchase if not for that.

Sebb767 5y ago

To be honest, I expected it to be larger. 4 million is an insanely big pile of money, but it's nothing that will show up in Amazons budget, even if we're talking about an hour or more of downtime.

djrogers 5y ago

That’s net income - gross income is likely an order of magnitude higher.

dreyfan 5y ago

Amazon net sales were $386B in 2020.

ghshephard 5y ago
That's total gross revenue for all of Amazon. From: https://www.statista.com/statistics/266288/annual-et-income-of-amazoncom/#:~:text=In%202020%2C%20online%20retail%20platform,than%20386%20billion%20U.S.%20dollars https://www.statista.com/statistics/266288/annual-et-income-.... "In 2020, online retail platform Amazon reported a net income of 21.33 billion U.S. dollars, up from a 11.6 billion U.S. dollar net income in the previous year. During the same fiscal period, the company's revenue amounted to more than 386 billion U.S. dollars."
- dreyfan 5y ago
  No shit. Nobody cares about net income. They care about how much consumer spend Amazon is losing during the outage. The total number above does indeed include AWS, which should be subtracted since it's not offline, leaving us with ~$340B in 2020.

ternaryoperator 5y ago

Most of Amazon's net income comes from AWS, not their retail sales. This will mostly hurt gross sales, which will have a trickle down effect on net income, of course, but not at the rate you calculated.

aserafini 5y ago
Yes they might even save money from this downtime.
deleted 5y ago
[deleted]

axaxs 5y ago

Since sales aren't evenly divided hourly, this is misleading. I'd imagine sales are much higher during the 6PM to 12AM EST hours than say, 3AM to 9AM EST hours. This time on a Sunday night could easily be 3 to 4x that much.

dylan604 5y ago
And many more sales occur during holidays like Black Friday time frame as well.

mmahemoff 5y ago

It's not like YouTube that would never get those eyeball-hours back. Most customers will return later instead of buying elsewhere.

kristopolous 5y ago

Maybe I'm in the minority but if I wanted to buy something on Amazon and it was down I'd just do something else and then come back later. They wouldn't actually lose my sale.

sneak 5y ago
There was something stupid I tried to buy earlier before seeing this (and couldn't), and now I can't remember what it was. Perhaps a keto snack food I thought of? Maybe it will come back to me, maybe it won't.
linsomniac 5y ago
For necessity purchases, yes. For impulse purchases, quite possibly no. One of the recommendations to save money is to never buy things the first time you think of buying them. While Amazon is bad for impulse buying, it can also be a tool to reduce it: I'll put things in my cart and just let it sit there, then maybe once a week I'll complete an order. "Save for later" anything I'm still unsure of. I have a lot of things in my "Save for later" that could have been impulse purchase if not for that.