Amazon’s international business lost more than US$600 million in the second quarter despite a 12 per cent rise in sales to $US16.4 billion.

 

Although the company did not elaborate, it’s understood start-up costs in countries such as Australia and costs associated with same or next day delivery impacted the result.

 

Amazon has said its move to one-day shipping was a key factor in its sequential revenue growth in North America in the second quarter.

 

On a worldwide basis, Amazon’s shipping costs in the second quarter were US$8.13 billion, 36 per cent higher than in the same quarter last year.

 

Analysts predict that shorter delivery times will lead to morefrequent purchases and higher revenue.

 

“Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started,” Amazon  founder Jeff Bezos said in the statement.

 

Amazon’s Q2 sales in North America were US$38.6 billion, a 20 per cent year-on-year increase. This compares with a 17 per cent increase reported in the first quarter.

 

Total global sales were up 21 per cent to US$63.4 billion while operating income increased to US$3.1 billion, up slightly compared to one year ago.

 

On Amazon Prime Day (15-16 July) more than US$2 billion of products were brought from independent businesses selling on Amazon.