Q3 Earnings: Andy Jassy on faster delivery, lowering cost to serve, groceries, pharmacy, and AI shopping

Summary

• Year-to-date units grew nearly 15% year over year after selling more than 30 billion items last year.
• Amazon added more than $90 billion in gross sales in the trailing 12 months.
• The company added about double the gross sales per quarter compared to its next largest U.S. retail competitor.
• North America & International segments each expanded operating margins by nearly 10 percentage points over the past few years.
• Nearly 80% of retail currently occurs in physical stores, a share expected to eventually flip to ecommerce.
• Amazon delivered more than 1.5 billion items to Prime customers same-day or overnight in Q3, marking its fastest quarter globally.
• Amazon Now is available in over 450 towns & cities with orders up 10x year over year.
• The company is on track to reduce cost to serve per unit for the fourth consecutive year.
• Gross sales for the Grocery business grew to nearly $250 billion in the trailing 12 months.
• Fresh groceries & everyday essentials grew about 3x faster than the rest of the store in Q3, representing about half of all units sold.
• Customers who shop perishables with Same-Day Delivery buy nearly 7x more everyday essential units than those who do not.
• Active grocery customers shop nearly 4x more non-grocery categories & spend over 2x more on those categories compared to non-grocery customers.