TORONTO -- Retail giant Amazon has released details of its record-breaking holiday season as the pandemic kept more customers at home and shopping online.
Though the company has yet to announce its total revenue earned throughout the holiday season, according to the third quarter results reported in October, its net sales increased by 37 per cent. Amazon's net sales reached US$96.1 billion in comparison to US$70 billion in the third quarter of 2019; by the end of the year, net sales would reach between US$112.0 billion and $121.0 billion.
According to a press release, 2020 has been the “best ever for independent businesses selling on Amazon.” The company reported a 50 per cent increase in third-party sales for small and medium-sized businesses worldwide in comparison to last year.
With the pandemic bringing most of the world into lockdown, cries for support to keep small businesses alive began to mount. However, many small Canadian businesses were forced to shut down throughout the year and several more continue to face bankruptcy into 2021.
Amazon says it has invested more than US$18 billion this year to aid the sales of independent businesses, as well as $100 million in promotional activities for small and medium businesses to gain recognition with customers throughout the holiday season. Since the beginning of the pandemic, the online retailer says it invested more than US$5 billion in operational costs on behalf of independent businesses.
Nonetheless, experts say small retailers are still experiencing hardships. Earlier this month, The Canadian Federation of Independent Businesses (CFIB) reported a rocky start to the busiest time of the year as only 29 per cent of businesses reported making normal sales in comparison to last month’s 28 per cent.
As COVID-19 cases continue to surge, many provinces and territories continue to extend their lockdowns leading to more restrictions for independent businesses. Last week the country’s most populous province, Ontario, initiated its strictest lockdown for 28 days in the southern regions, a move that has left many small businesses concerned for their survival as the restrictions don’t affect larger retailers such as Walmart and Costco.
A survey conducted by Maru/Matchbox in partnership with the CFIB showed that nine in 10 consumers believe local retailers should remain open while following public health guidelines. The survey of more than 1,500 people indicated that 87 per cent of Canadians say it’s unfair for giant retailers to remain open while independent businesses face harsher restrictions.
Aside from record-breaking sales, Amazon said it over-exceeded expectations with its virtual assistant Alexa, which customers used tens of millions of times to find cooking recipes, gift suggestions and connecting with family.
Overall, Amazon reported delivering 1.5 billion toys, beauty products, electronics and other products this holiday season.
