Amazon.com is one of the biggest online marketplaces, which is enjoying a huge profit after the end of Quarter 1. To be precise, the profit has bloated to reach the double amount of $1.6 billion. This has also resulted in the hike in the prices of individual shares.
The cloud, as well as advertising businesses of the company, are the prime reasons for the growth of the profit. The integrated sales grew 43%, which is $51 billion, which was $35.7 billion the previous year.
After the surge in the profit, the company has declared to increase the fee associated with the Prime membership to $119. This amount is 20% more than the present amount and it will be initiated from May 11 for the new users whereas the existing users will have to pay the hiked price from June 16 this year.
As per the officials of the company, prime membership covers a big portion of the profit. Due to the advantage offered like free two-day delivery on more than 100 million items, people are opting for the subscription at an exponential rate.
Amazon initiated its journey 24 years back as an online portal to avail books. From there it has now reached a milestone where people can access millions of item like groceries, fashion, accessories, electronic gadgets, and others. To enhance the value of the brand further, it has decided to club with the big shots like JP Morgan Chase and Berkshire Hathaway. This will help it create an independent healthcare unit.
Though the company is experiencing a huge success and profit, it is obtained in exchange for the closure of the Brick and Mortar companies.
Amazon also declared to deliver packages to the vehicles, which are either parked at home or offices to make the service easily accessible to the people residing in 37 cities of the U.S.