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Amazon says it will hire more than 300,000 seasonal, part-time and full-time workers across its U.S. operations network for the holiday period. The company also reported that selection from brands including FAO Schwarz rose by more than 20% year over year, while more than 1.5 billion items reached Prime customers the same day or overnight in the third quarter.
Amazon plans to hire more than 300,000 workers across its U.S. operations network for the holiday season, while expanding the brands available on its platform and reporting faster third-quarter delivery speeds. The update comes as the company prepares for its busiest retail period and projects fourth-quarter sales of $240 billion to $247 billion.
Amazon said its third-quarter net sales rose 12% to $201.9 billion. North American sales increased 6% to $112.9 billion, while operating income was $28.1 billion, compared with $17.4 billion in the same quarter a year earlier. The results provide a financial backdrop to the company’s holiday preparations, but the year-over-year growth comparison is affected by the timing of Prime Day.
The company plans to add more than 300,000 seasonal, part-time and full-time workers across its U.S. operations network. Amazon also reported that more than 1.5 billion items reached Prime customers the same day or overnight during the third quarter. The company described it as its fastest third quarter for delivery speeds; the figure covers items delivered through those speed options during that quarter.
On the retail side, selection from brands including FAO Schwarz increased by more than 20% year over year, according to the report. Amazon Ads also partnered with Warner Bros. Pictures Animation on an “Open to Fun” campaign for The Cat in the Hat. The promotion spans Amazon, Prime Video, IMDb, Twitch and Alexa, and includes a mobile experience and two Alexa activations featuring Bill Hader as the Cat. Just Play is handling toys for the film, according to the report.
More Stock and Capacity for Holiday
For shoppers and sellers, the reported changes point to Amazon preparing both its fulfillment capacity and product assortment for holiday demand. Hiring more than 300,000 workers is a substantial seasonal staffing plan, while the delivery figure offers a measure of how many items reached Prime customers through same-day or overnight service in the third quarter. Amazon did not provide a separate estimate of how these investments will affect delivery performance during the holiday peak.
The brand expansion is relevant to toy and licensing businesses because a broader selection can give established brands more presence on the platform. The Cat in the Hat campaign also links entertainment promotion with shopping and interactive features across Amazon services. The report describes that approach as an example of entertainment properties being used across advertising and retail; it does not quantify the campaign’s sales impact.
Amazon’s projected fourth-quarter sales range gives investors and retailers a view of the company’s expectations for the holiday quarter. It is a forecast, not a reported outcome, and the company’s results will depend on actual demand and operating conditions.
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Prime Day Shifts the Comparison
Amazon’s third-quarter growth rate needs to be read alongside a change in the timing of Prime Day. The event took place in the second quarter this year across most major markets, while it fell entirely in the third quarter last year. Amazon said quarterly sales growth would have been about four percentage points higher without that shift. That is the company’s explanation of the comparison, not a restatement of the reported 12% growth figure.
The reported results place the holiday plans within a wider operating picture: North American sales grew more slowly than total company sales, while operating income rose compared with a year earlier. The source report does not break out how much of the third-quarter performance came from the specific brands, delivery speeds or advertising activity described.
The advertising campaign is a separate development from the staffing and earnings update, but it illustrates how Amazon can connect products and entertainment across its retail and media services. The report identifies the campaign’s platforms and features but does not state when each activation will begin or how long it will run.
“Quarterly growth would have been about four percentage points higher without the Prime Day timing shift.”
— Amazon, as reported by The Toy Book
Holiday Results Still Pending
The announced hiring plan does not specify how the more than 300,000 roles are divided among seasonal, part-time and full-time positions, where each worker will be based, or how long seasonal roles will last. Amazon also has not provided a holiday-specific delivery forecast in the source report, so the third-quarter delivery figure should not be taken as a guarantee of service levels during peak demand.
The reported increase in brand selection is not accompanied by a list of added products, a breakdown by brand, or a sales measure. The report likewise provides no results for the Cat in the Hat campaign. Amazon’s fourth-quarter revenue range remains a projection, and actual sales and operating income for the period are not yet available.
Fourth-Quarter Sales Test
The next major measure will be Amazon’s actual fourth-quarter performance against its $240 billion to $247 billion sales forecast, which the company said represents growth of 12% to 16% from the prior year. The holiday period will also show whether the expanded workforce and faster delivery network can support demand, though the source report does not give a specific date for further operational updates.
Retailers and toy companies will be watching for further details on brand availability and entertainment-linked promotions. The current report does not identify additional campaign milestones or confirm how the expanded selection will change during the season.
Key Questions
How many workers is Amazon hiring for the holiday season?
Amazon plans to hire more than 300,000 seasonal, part-time and full-time workers across its U.S. operations network. The report does not give a breakdown by job type or location.
What did Amazon report about delivery speeds?
Amazon said more than 1.5 billion items reached Prime customers the same day or overnight during the third quarter. The company called it its fastest third quarter for delivery speeds.
How much did Amazon’s brand selection grow?
The report says selection from brands including FAO Schwarz increased by more than 20% year over year. It does not provide a product count or sales breakdown for the brands mentioned.
What is Amazon forecasting for the fourth quarter?
Amazon expects fourth-quarter sales of $240 billion to $247 billion, up 12% to 16% from the prior year. That is a forecast, not a confirmed result.
Why did Prime Day affect the third-quarter comparison?
Prime Day was in the second quarter this year across most major markets, but fell entirely in the third quarter last year. Amazon said the timing shift reduced the reported year-over-year growth comparison by about four percentage points.
Source: toybook.com
