, Inc. (NASDAQ:AMZN) Q3 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 05:30 pm ET

Previous, Inc. (NASDAQ:AMZN) Q3 2020 Earnings Conference Call - Final Transcript


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Brian T. Olsavsky

by extending a big thank you to all the folks who worked hard to make this year's Prime Day a great success. Not only for our more than 150 million Prime members around the world, but also for the hundreds of thousands of small and medium-sized businesses who sell on our Amazon store, many of whom are facing their own challenges during this pandemic. These businesses thrived on Prime Day, with third-party sellers recognizing more than $3.5 billion in sales over the two-day global event. That's a 60% increase compared to Prime Day last year. I also want to thank and recognize the contributions of the more than one million Amazon employees and delivery partners who are continuing to work hard to serve our customers all around the world.

We will continue to spend what it takes to help ensure the safety and well-being of our employees and partners. Now, let me share some highlights from the quarter. Our Q3 results largely reflect a continuation of demand trends we saw when we exited the second quarter with strong demand in sales growth across our major product categories globally including Hardlines, Consumables, Softlines and Media. We also continue to see strong Prime member engagement. Prime members continue to shop with greater frequency and across more categories and before the pandemic began. They continue to expand their usage of Prime's digital benefits including Prime Video.

Internationally, the number of Prime members who stream Prime Video grew by more than 80% year-over-year in the third quarter and international customers more than doubled the hours of content they watch on Prime Video compared to last year. We're also reaching more customers with our grocery offerings. In Q3, our year-over-year growth rate of online grocery sales continued to accelerate and we've continued to offer more convenient options for customers including grocery pickup which is now available from all Whole Foods Market stores.

And just as we saw in Q2, Prime member renewal rates improved in Q3 year-over-year. 3P sellers who as I mentioned are largely comprised of small and medium-sized businesses continued to an important part of our offering to customers. Our 3P seller services revenue continue to grow faster than online stores revenue. With particularly strong growth this quarter in FBA as we returned to a similar mix of FBA as a percentage of total 3P units as we've seen prior to COVID. 3P units continue to represent over half of overall unit volume increasing to 54% of the total unit mix in Q3.

We're investing heavily to support sellers and are pleased to report that over 0.5 million sellers are seeing record sales in our stores this year. We continue to focus on stepped up employee safety, particularly in our fulfillment and logistics operations to help ensure the safety and well-being of our employees and partners as well as the employees and customers shopping in our Whole Foods Market and other stores.

This of course has added incremental cost to our P&L. The