Jeff Bezos, the founder of the legendary e-commerce company Amazon, has been crowned the richest man in the world. He is now replaced by Bill Gates. On Thursday, Amazon announced its quarterly results, after which the company's shares have fallen by seven percent.
That is the reason, which has reduced Bezos' wealth to $ 103.9 billion and is occupied by Bill Gates in the first place. Bill Gates has assets of US $ 105.7 billion. Bill Gates is the founder of Microsoft.
Company's profit decreased compared to last year.
Amazon has announced the July-September quarterly results. The company's profits have fallen by 28 per cent this year over the previous year. During this period, Amazon has earned a profit of Rs 14,910 crore, or $ 2.1 billion.
In 2018, Bezos became the richest person, surpassing Bill Gates. Before that Bill Gates had been the richest man in the world for 24 years. This is the first decrease in Amazon's profit since 2017. In 1987, Bill Gates was included in Forbes' list as the world's richest man for the first time. However, Bezos was included in the list of America's 400 richest in 1998.
Actually, Amazon has invested heavily to speed up order delivery, which has resulted in a decrease in profits. Amazon made a big announcement for its prime members. Amazon announced deliveries for Prime Members in only one day instead of two days. Earlier the company used to deliver to customers in two days. This has increased the company's shipping expenses. In this context, the company's CEO Jeff Bezos has stated that the investment will be beneficial for the long term. Customers are preferring the facility of one day delivery instead of two days.
Shipping expenses increased
Amazon's shipping costs have increased significantly since this delivery announcement. In the September quarter, the company's shipping expenses grew by 46 percent to Rs 68,160 crore, or $ 9.6 billion.
However, the sale of the company has also increased due to the announcement of delivery in a day. This has increased the company's revenue by 24 percent. In the September quarter, it stood at Rs 4.97 lakh crore, or $ 70 billion. Whereas in September last year it was $ 56.6 billion.
The company expects revenues of $ 80 billion to $ 86.5 billion and profits of $ 1.2 billion to $ 2.9 billion in the October-December quarter.
The web service (AWS), which accounts for a major share in profits, generated revenues of Rs 63,900 crore, or $ 9 billion, a 35 per cent increase over the September quarter of last year.