<\/a><\/p>\n<\/p>\n\nA weekly podcast with the latest e-commerce news and events. Episode 308 is breakdown of Amazon\u2019s Q2 2023 earnings.<\/p>\n <\/p>\nSubscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon reported a strong quarter across the board for Q2, soundly exceeding analyst expectations and retail industry averages. In this episode we break down the 1p and 3p retail performance, AWS, and the Ads. We go into depth around Amazon disruption reorganization (to a regional model), Amazon\u2019s newest efforts in grocery, and health care.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 308 of the Jason & Scot show was recorded on Thursday, August 4, 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapterT\" class=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.473\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show\u00a0<\/span><span title=\"0:25 - 0:40\" data-start=\"00:00:25.377\" data-end=\"00:00:39.564\" data-spk=\"0\" data-label=\"Jason\">this is episode a 308 being recorded on Thursday August 3rd 2023 that\u2019s a lot of Threes I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:40]<\/small>\u00a0<span title=\"0:40 - 0:51\" data-start=\"00:00:39.600\" data-end=\"00:00:51.498\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason and Scott showed listeners well Jason today is one of my four favorite days of the year it is Amazon earnings day.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:51]<\/small>\u00a0<span title=\"0:51 - 0:54\" data-start=\"00:00:51.342\" data-end=\"00:00:54.382\" data-spk=\"0\" data-label=\"Jason\">I was going to guess it\u2019s the 4th Halloween okay.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:54]<\/small>\u00a0<span title=\"0:54 - 1:05\" data-start=\"00:00:54.088\" data-end=\"00:01:05.367\" data-spk=\"1\" data-label=\"Scot\">Nope good guess and today was a real doozy so we have a lot to talk about and of course it wouldn\u2019t be a Jason and Scot show without.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:05]<\/small>\u00a0<span title=\"1:05 - 1:18\" data-start=\"00:01:05.175\" data-end=\"00:01:18.412\" data-spk=\"0\" data-label=\"Jason\">Amazon news your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:18]<\/small>\u00a0<span title=\"1:18 - 1:25\" data-start=\"00:01:18.112\" data-end=\"00:01:25.383\" data-spk=\"1\" data-label=\"Scot\">That\u2019s right sometimes I hear from listeners why do you guys spend so much time talking about Amazon well\u00a0<\/span><span title=\"1:25 - 1:31\" data-start=\"00:01:25.245\" data-end=\"00:01:30.995\" data-spk=\"1\" data-label=\"Scot\">my rationale is a it\u2019s one of my favorite subjects did be\u00a0<\/span><span title=\"1:31 - 1:45\" data-start=\"00:01:30.882\" data-end=\"00:01:44.858\" data-spk=\"1\" data-label=\"Scot\">not only is Amazon the biggest retailer but it represents over half of e-commerce and for our listeners I think their data is pretty much the standard compared to even anything like comscore or adobe,\u00a0<\/span><span title=\"1:45 - 1:48\" data-start=\"00:01:44.859\" data-end=\"00:01:47.977\" data-spk=\"1\" data-label=\"Scot\">just by definition of them having so much data\u00a0<\/span><span title=\"1:48 - 2:03\" data-start=\"00:01:47.857\" data-end=\"00:02:02.705\" data-spk=\"1\" data-label=\"Scot\">that it is the basically the best source for what\u2019s going on and then given our macro environment we\u2019re at the tail end of the last show you were talking about how it\u2019s setting up for kind of a bad holiday so\u00a0<\/span><span title=\"2:03 - 2:12\" data-start=\"00:02:02.562\" data-end=\"00:02:11.935\" data-spk=\"1\" data-label=\"Scot\">we\u2019re heading into this it\u2019s a critical quarter and for me Q to see what Amazon is done really sets us up for the back half of the year.<\/span><br \/><span title=\"2:12 - 2:14\" data-start=\"00:02:12.254\" data-end=\"00:02:13.564\" data-spk=\"1\" data-label=\"Scot\">And especially holiday.<\/span><br \/><span title=\"2:14 - 2:23\" data-start=\"00:02:13.738\" data-end=\"00:02:22.806\" data-spk=\"1\" data-label=\"Scot\">So kind of a canary in the coal mine and right now there\u2019s all this confusing data coming out about the consumer you see things that sentiment is down\u00a0<\/span><span title=\"2:23 - 2:33\" data-start=\"00:02:22.668\" data-end=\"00:02:32.576\" data-spk=\"1\" data-label=\"Scot\">travel to starting to tip over housing is slowing so there\u2019s some negative but yet credit card spend is going pretty well\u00a0<\/span><span title=\"2:32 - 2:38\" data-start=\"00:02:32.451\" data-end=\"00:02:37.564\" data-spk=\"1\" data-label=\"Scot\">and so this is probably the best read we\u2019re going to get on the consumer heading into holiday.<\/span><\/p>\n<p><small>[2:39]<\/small>\u00a0<span title=\"2:39 - 2:45\" data-start=\"00:02:38.538\" data-end=\"00:02:44.540\" data-spk=\"1\" data-label=\"Scot\">So I think of it as Scott foreshadowing the whole industry that\u2019s why we like to spend a lot of time on it,\u00a0<\/span><span title=\"2:45 - 2:51\" data-start=\"00:02:44.691\" data-end=\"00:02:51.000\" data-spk=\"1\" data-label=\"Scot\">so the other thing I\u2019ll point out is it\u2019s been kind of a rough period for Amazon the last,\u00a0<\/span><span title=\"2:51 - 3:01\" data-start=\"00:02:51.025\" data-end=\"00:03:00.819\" data-spk=\"1\" data-label=\"Scot\">probably 6\/4 a day that things have slowed down post covid they\u2019ve struggled they\u2019ve done some layoffs but having watched Amazon if we zoom zoom out\u00a0<\/span><span title=\"3:01 - 3:04\" data-start=\"00:03:00.753\" data-end=\"00:03:03.962\" data-spk=\"1\" data-label=\"Scot\">having followed them since 97\u00a0<\/span><span title=\"3:04 - 3:16\" data-start=\"00:03:03.944\" data-end=\"00:03:15.986\" data-spk=\"1\" data-label=\"Scot\">they\u2019re really good at reading the room and if the market and the externalities are saying you\u2019re free to invest they will invest like crazy and you know and by saying that I mean they\u2019ll focus on Revenue growth\u00a0<\/span><span title=\"3:16 - 3:25\" data-start=\"00:03:15.854\" data-end=\"00:03:24.861\" data-spk=\"1\" data-label=\"Scot\">implementing infrastructure but then when the macro turns \u2013 and they can move to harvest pretty quickly so,\u00a0<\/span><span title=\"3:25 - 3:39\" data-start=\"00:03:24.994\" data-end=\"00:03:38.598\" data-spk=\"1\" data-label=\"Scot\">a lot of that kind of goes as good as Wall Street so Wall Street will love them and give them a lot of rope and they\u2019ll invest invest invest and then while she starts to worry they\u2019re like oh my gosh this is scary your spending so much things are doing this and then\u00a0<\/span><span title=\"3:38 - 3:45\" data-start=\"00:03:38.466\" data-end=\"00:03:44.902\" data-spk=\"1\" data-label=\"Scot\">they will turn very quickly and can then get into Harvest mode and produce results\u00a0<\/span><span title=\"3:45 - 3:56\" data-start=\"00:03:44.818\" data-end=\"00:03:56.247\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a really a big theme for this quarter so that\u2019s part of the set of the other part of the setup is we have some eCommerce data coming into this what is that,\u00a0<\/span><span title=\"3:56 - 4:00\" data-start=\"00:03:56.343\" data-end=\"00:04:00.105\" data-spk=\"1\" data-label=\"Scot\">what are those tea leaves tell us before we jump into Amazon.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:00]<\/small>\u00a0<span title=\"4:00 - 4:09\" data-start=\"00:03:59.805\" data-end=\"00:04:09.347\" data-spk=\"0\" data-label=\"Jason\">Yeah so we have data from the US Department of Commerce through June and it is a really complicated story so that\u00a0<\/span><span title=\"4:09 - 4:22\" data-start=\"00:04:09.245\" data-end=\"00:04:21.948\" data-spk=\"0\" data-label=\"Jason\">the top line is a little bit of a worrisome sign so year-to-date January through June of this year retail sales are 1.9 percent higher than they were during that same period last year\u00a0<\/span><span title=\"4:22 - 4:23\" data-start=\"00:04:21.786\" data-end=\"00:04:23.426\" data-spk=\"0\" data-label=\"Jason\">so\u00a0<\/span><span title=\"4:23 - 4:32\" data-start=\"00:04:23.480\" data-end=\"00:04:31.953\" data-spk=\"0\" data-label=\"Jason\">time now to put that in perspective in the 10 years leading up to covid we average retail growth of 4% a year so so far this year\u00a0<\/span><span title=\"4:32 - 4:39\" data-start=\"00:04:31.791\" data-end=\"00:04:38.581\" data-spk=\"0\" data-label=\"Jason\">the growth is less than half of the industry average and then the last three years of growth the last 3 years of Cook\u00a0<\/span><span title=\"4:38 - 4:48\" data-start=\"00:04:38.461\" data-end=\"00:04:48.490\" data-spk=\"0\" data-label=\"Jason\">post covid were the biggest three years of retail growth in the history of retail so we had these three monster years and now for the first time we have a six month period That\u2019s,\u00a0<\/span><span title=\"4:49 - 4:53\" data-start=\"00:04:48.502\" data-end=\"00:04:53.002\" data-spk=\"0\" data-label=\"Jason\">well off the average and,\u00a0<\/span><span title=\"4:53 - 5:01\" data-start=\"00:04:53.045\" data-end=\"00:05:00.994\" data-spk=\"0\" data-label=\"Jason\">Q2 was worse than q1 now you know people always say well what about inflation in these numbers\u00a0<\/span><span title=\"5:01 - 5:09\" data-start=\"00:05:00.857\" data-end=\"00:05:08.764\" data-spk=\"0\" data-label=\"Jason\">if you adjust all these numbers back to 2019 dollars to sort of take inflation out of it,\u00a0<\/span><span title=\"5:09 - 5:15\" data-start=\"00:05:08.861\" data-end=\"00:05:14.659\" data-spk=\"0\" data-label=\"Jason\">retail sales this year are actually down 2.8 percent from last year so so.<\/span><\/p>\n<p><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:23\" data-start=\"00:05:14.792\" data-end=\"00:05:23.468\" data-spk=\"0\" data-label=\"Jason\">All of the Mir growth we have this year is really due to its unusually high inflation now big caveat there,\u00a0<\/span><span title=\"5:24 - 5:32\" data-start=\"00:05:23.565\" data-end=\"00:05:31.953\" data-spk=\"0\" data-label=\"Jason\">the information news is actually pretty solid in inflation in June is only up three percent year over year which.<\/span><\/p>\n<p><small>[5:32]<\/small>\u00a0<span title=\"5:32 - 5:39\" data-start=\"00:05:32.254\" data-end=\"00:05:38.942\" data-spk=\"0\" data-label=\"Jason\">You know before all this inflation stuff started the Fed was always trying to keep inflation between two point two and three percent so.<\/span><\/p>\n<p><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:47\" data-start=\"00:05:39.255\" data-end=\"00:05:47.481\" data-spk=\"0\" data-label=\"Jason\">Information down and three percent if it if it stays down there is pretty encouraging but from a retail standpoint,\u00a0<\/span><span title=\"5:48 - 5:51\" data-start=\"00:05:47.577\" data-end=\"00:05:50.828\" data-spk=\"0\" data-label=\"Jason\">you have this weird thing you have the macroeconomics getting better\u00a0<\/span><span title=\"5:51 - 5:59\" data-start=\"00:05:50.810\" data-end=\"00:05:59.282\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a lot more economists saying we\u2019re not going into a recession we somehow managed a soft Landing you\u2019ve got the inflation numbers coming way down\u00a0<\/span><span title=\"5:59 - 6:11\" data-start=\"00:05:59.241\" data-end=\"00:06:11.222\" data-spk=\"0\" data-label=\"Jason\">all the wages and employment numbers have continued to be robust so you\u2019re all these favorable macroeconomics and now the consumer has stopped spending and you hear every retail are talking about how,\u00a0<\/span><span title=\"6:11 - 6:19\" data-start=\"00:06:11.295\" data-end=\"00:06:19.287\" data-spk=\"0\" data-label=\"Jason\">consumers are trading down a cheaper Goods they\u2019re buying more needs and less wants and all of these sorts of things and so.<\/span><br \/><span title=\"6:20 - 6:25\" data-start=\"00:06:19.503\" data-end=\"00:06:24.815\" data-spk=\"0\" data-label=\"Jason\">If you if you kind of look at the retail industry average.<\/span><br \/><span title=\"6:26 - 6:35\" data-start=\"00:06:25.500\" data-end=\"00:06:34.784\" data-spk=\"0\" data-label=\"Jason\">There are two retailers that have hit consistently been outperforming the industry average and those two retailers are Walmart and Amazon which are the two,\u00a0<\/span><span title=\"6:35 - 6:38\" data-start=\"00:06:34.929\" data-end=\"00:06:37.771\" data-spk=\"0\" data-label=\"Jason\">largest retailers in the United States of America.<\/span><br \/><span title=\"6:38 - 6:50\" data-start=\"00:06:37.921\" data-end=\"00:06:50.107\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s some controversy over who\u2019s actually bigger but we\u2019ll leave that for another show if the bottom line is if the two biggest retailers in the market are both outperforming the industry average.<\/span><br \/><span title=\"6:50 - 6:54\" data-start=\"00:06:50.372\" data-end=\"00:06:53.995\" data-spk=\"0\" data-label=\"Jason\">That\u2019s a bad sign for the rest of the retailers.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:54]<\/small>\u00a0<span title=\"6:54 - 6:56\" data-start=\"00:06:53.719\" data-end=\"00:06:55.509\" data-spk=\"1\" data-label=\"Scot\">Someone\u2019s losing share.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:55]<\/small>\u00a0<span title=\"6:55 - 7:02\" data-start=\"00:06:55.209\" data-end=\"00:07:02.053\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and I would note we don\u2019t talk about it a ton on the show but then there\u2019s two Chinese companies that are.<\/span><br \/><span title=\"7:02 - 7:11\" data-start=\"00:07:02.258\" data-end=\"00:07:11.019\" data-spk=\"0\" data-label=\"Jason\">Dramatically grabbing share really quick so she and and and Tim ooh so you know outside of those four.<\/span><br \/><span title=\"7:11 - 7:16\" data-start=\"00:07:11.254\" data-end=\"00:07:15.742\" data-spk=\"0\" data-label=\"Jason\">It\u2019s not looking super up to Mystic for,\u00a0<\/span><span title=\"7:16 - 7:29\" data-start=\"00:07:15.820\" data-end=\"00:07:28.992\" data-spk=\"0\" data-label=\"Jason\">for retail so I was super curious to hear not only how Amazon did but what they\u2019re what guidance they gave for Q3 and what they were seeing in terms of consumer spending because we do have this weird paradox.<\/span><br \/><span title=\"7:29 - 7:31\" data-start=\"00:07:29.365\" data-end=\"00:07:31.191\" data-spk=\"0\" data-label=\"Jason\">Macroeconomics getting better,\u00a0<\/span><span title=\"7:31 - 7:41\" data-start=\"00:07:31.288\" data-end=\"00:07:40.680\" data-spk=\"0\" data-label=\"Jason\">but retail spending getting worse so that being said like what what did Amazon report Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:40]<\/small>\u00a0<span title=\"7:40 - 7:52\" data-start=\"00:07:40.380\" data-end=\"00:07:52.121\" data-spk=\"1\" data-label=\"Scot\">Well it\u2019s an interesting quarter because again for like the last six quarters are 18 months it\u2019s been kind of using Wall Street language Wall Street always comes in with expectations and\u00a0<\/span><span title=\"7:52 - 8:01\" data-start=\"00:07:52.031\" data-end=\"00:08:01.333\" data-spk=\"1\" data-label=\"Scot\">then you either meet those beat them or miss them and or sometimes I\u2019ll call it in line if you meet their expectations well this was this was\u00a0<\/span><span title=\"8:01 - 8:06\" data-start=\"00:08:01.213\" data-end=\"00:08:05.545\" data-spk=\"1\" data-label=\"Scot\">pretty much an unprecedented four-way beat\u00a0<\/span><span title=\"8:05 - 8:17\" data-start=\"00:08:05.353\" data-end=\"00:08:16.680\" data-spk=\"1\" data-label=\"Scot\">with a raise and that\u2019s that last part is what about next quarter so the current quarter is did you how did you do and then did you for future Revenue\u00a0<\/span><span title=\"8:17 - 8:21\" data-start=\"00:08:16.560\" data-end=\"00:08:21.415\" data-spk=\"1\" data-label=\"Scot\">expectations did you stay in line with those or did you raise them so this was kind of like\u00a0<\/span><span title=\"8:21 - 8:29\" data-start=\"00:08:21.271\" data-end=\"00:08:28.788\" data-spk=\"1\" data-label=\"Scot\">one of the best quarters you can have using all the Wall Street language and I say a four way beat so number one is earnings per share,\u00a0<\/span><span title=\"8:29 - 8:41\" data-start=\"00:08:28.801\" data-end=\"00:08:40.746\" data-spk=\"1\" data-label=\"Scot\">while she was expecting 35 cents and they handily beat that at 65 cents so that\u2019s the first one the second one is revenue revenue came in at 134 billion versus 131a clear beat.<\/span><\/p>\n<p><small>[8:41]<\/small>\u00a0<span title=\"8:41 - 8:48\" data-start=\"00:08:41.161\" data-end=\"00:08:48.047\" data-spk=\"1\" data-label=\"Scot\">AWS Revenue there was a lot of worry around this because Microsoft was really showing their\u00a0<\/span><span title=\"8:48 - 8:55\" data-start=\"00:08:47.994\" data-end=\"00:08:55.252\" data-spk=\"1\" data-label=\"Scot\">first of all Microsoft had to break out as your separately for the first time and it used to be all clumped in together in this kind of cloud bucket,\u00a0<\/span><span title=\"8:55 - 9:01\" data-start=\"00:08:55.373\" data-end=\"00:09:01.489\" data-spk=\"1\" data-label=\"Scot\">where they could kind of have office they\u2019re hiding what was going on with Azure so now that Microsoft had to call,\u00a0<\/span><span title=\"9:02 - 9:07\" data-start=\"00:09:01.622\" data-end=\"00:09:07.288\" data-spk=\"1\" data-label=\"Scot\">carve out Azure it has been slowing down very dramatically so everyone was very worried about that\u00a0<\/span><span title=\"9:07 - 9:12\" data-start=\"00:09:07.181\" data-end=\"00:09:11.735\" data-spk=\"1\" data-label=\"Scot\">a WS beat the expectation was 21.8 and they came in at 22.<\/span><br \/><span title=\"9:12 - 9:18\" data-start=\"00:09:11.916\" data-end=\"00:09:18.381\" data-spk=\"1\" data-label=\"Scot\">I will talk a little bit more about the growth things and some other color there third-party exceeded expectation\u00a0<\/span><span title=\"9:18 - 9:28\" data-start=\"00:09:18.243\" data-end=\"00:09:28.470\" data-spk=\"1\" data-label=\"Scot\">the only thing that was really kind of in line is online store Revenue but the margin improvements if you can\u2019t go back to that EPS were so dramatic that everyone was fine with Alan being I think it was like.<\/span><\/p>\n<p><small>[9:30]<\/small>\u00a0<span title=\"9:30 - 9:32\" data-start=\"00:09:29.564\" data-end=\"00:09:32.010\" data-spk=\"1\" data-label=\"Scot\">Point two percent miss or something it was like\u00a0<\/span><span title=\"9:32 - 9:42\" data-start=\"00:09:31.938\" data-end=\"00:09:41.918\" data-spk=\"1\" data-label=\"Scot\">basically in line so that was the only piece that didn\u2019t beat and everyone was fine with that because all these other things really swamped the outcome there and then\u00a0<\/span><span title=\"9:42 - 9:45\" data-start=\"00:09:41.895\" data-end=\"00:09:45.001\" data-spk=\"1\" data-label=\"Scot\">to cap that off the midpoint\u00a0<\/span><span title=\"9:45 - 9:57\" data-start=\"00:09:44.815\" data-end=\"00:09:57.356\" data-spk=\"1\" data-label=\"Scot\">we\u2019ll talk about it but this represents about 11% growth all in for this quarter and the next quarter they guide for growth for 11 to 13 so they\u2019re basically saying hey we beat your expectations this quarter\u00a0<\/span><span title=\"9:57 - 10:08\" data-start=\"00:09:57.230\" data-end=\"00:10:08.196\" data-spk=\"1\" data-label=\"Scot\">and things are accelerating into Q3 so and then they also on the bottom line that guided up for next quarter as well so that went really really well\u00a0<\/span><span title=\"10:08 - 10:10\" data-start=\"00:10:08.064\" data-end=\"00:10:09.831\" data-spk=\"1\" data-label=\"Scot\">um and\u00a0<\/span><span title=\"10:10 - 10:18\" data-start=\"00:10:09.711\" data-end=\"00:10:18.370\" data-spk=\"1\" data-label=\"Scot\">that was a pretty amazing so let\u2019s peel the onion and see what we can learn you want to take us through the retail business.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:18]<\/small>\u00a0<span title=\"10:18 - 10:22\" data-start=\"00:10:18.070\" data-end=\"00:10:22.065\" data-spk=\"0\" data-label=\"Jason\">Yeah for sure so the\u00a0<\/span><span title=\"10:22 - 10:33\" data-start=\"00:10:22.054\" data-end=\"00:10:33.482\" data-spk=\"0\" data-label=\"Jason\">the retail business globally grew 11% so that last year this in this quarter they grew nine percent so accelerated growth,\u00a0<\/span><span title=\"10:34 - 10:42\" data-start=\"00:10:33.597\" data-end=\"00:10:41.739\" data-spk=\"0\" data-label=\"Jason\">North America grew 11 per sent an international grew ten percent\u00a0<\/span><span title=\"10:42 - 10:53\" data-start=\"00:10:41.661\" data-end=\"00:10:52.874\" data-spk=\"0\" data-label=\"Jason\">International really struggle this time last year they actually had a 12% decline last year and so so in general pretty robust growth now,\u00a0<\/span><span title=\"10:53 - 11:02\" data-start=\"00:10:52.880\" data-end=\"00:11:02.212\" data-spk=\"0\" data-label=\"Jason\">these are the revenue numbers which returned mine everyone Amazons and Marketplace they don\u2019t report all of their sales as Revenue they only report,\u00a0<\/span><span title=\"11:02 - 11:08\" data-start=\"00:11:02.290\" data-end=\"00:11:08.395\" data-spk=\"0\" data-label=\"Jason\">one piece sales and then the fees they earn on 3-piece sales so it\u2019s not it\u2019s not a perfect.<\/span><\/p>\n<p><small>[11:09]<\/small>\u00a0<span title=\"11:09 - 11:16\" data-start=\"00:11:08.834\" data-end=\"00:11:16.201\" data-spk=\"0\" data-label=\"Jason\">Now match to to the sort of Industry retail data I said but it\u2019s a close approximation so,\u00a0<\/span><span title=\"11:16 - 11:28\" data-start=\"00:11:16.225\" data-end=\"00:11:27.774\" data-spk=\"0\" data-label=\"Jason\">on average retail grows four percent a quarter the last two quarters retails grown you know less than half of that and Amazon comes in at 10 or 11 percent growth.<\/span><br \/><span title=\"11:28 - 11:36\" data-start=\"00:11:27.937\" data-end=\"00:11:35.874\" data-spk=\"0\" data-label=\"Jason\">So that\u2019s you know a pretty healthy outperforming that the industry average is and,\u00a0<\/span><span title=\"11:36 - 11:42\" data-start=\"00:11:35.959\" data-end=\"00:11:41.962\" data-spk=\"0\" data-label=\"Jason\">you\u2019re essentially taking share from the rest of retail now often just a side note.<\/span><br \/><span title=\"11:42 - 11:48\" data-start=\"00:11:42.275\" data-end=\"00:11:48.001\" data-spk=\"0\" data-label=\"Jason\">Obviously the vast majority of Amazon sales are online traditionally online grows much faster than.<\/span><\/p>\n<p><small>[11:48]<\/small>\u00a0<span title=\"11:48 - 11:58\" data-start=\"00:11:48.380\" data-end=\"00:11:57.934\" data-spk=\"0\" data-label=\"Jason\">Brick and mortar so historically we would see ten to fifteen percent online sales but post pandemic that\u2019s actually slowed down quite a bit and so,\u00a0<\/span><span title=\"11:58 - 12:02\" data-start=\"00:11:58.012\" data-end=\"00:12:02.020\" data-spk=\"0\" data-label=\"Jason\">online sales this year are probably averaging around.<\/span><br \/><span title=\"12:02 - 12:10\" data-start=\"00:12:02.327\" data-end=\"00:12:10.331\" data-spk=\"0\" data-label=\"Jason\">Seven and a half our eight percent and so Amazon\u2019s growth not only did it beat brick-and-mortar it actually beat the industry average,\u00a0<\/span><span title=\"12:10 - 12:17\" data-start=\"00:12:10.445\" data-end=\"00:12:16.934\" data-spk=\"0\" data-label=\"Jason\">even for e-commerce so that that is very robust,\u00a0<\/span><span title=\"12:17 - 12:28\" data-start=\"00:12:16.959\" data-end=\"00:12:28.021\" data-spk=\"0\" data-label=\"Jason\">they spent a lot of time both in their their press release and also in their earnings call talking about their focus on efficiencies,\u00a0<\/span><span title=\"12:29 - 12:40\" data-start=\"00:12:29.211\" data-end=\"00:12:39.607\" data-spk=\"0\" data-label=\"Jason\">and you know the all the work and efficiencies reorganization of their supply chain you know changing of Labor models,\u00a0<\/span><span title=\"12:40 - 12:44\" data-start=\"00:12:39.685\" data-end=\"00:12:43.897\" data-spk=\"0\" data-label=\"Jason\">that those others efficiencies are starting to bear fruit because,\u00a0<\/span><span title=\"12:44 - 12:52\" data-start=\"00:12:43.976\" data-end=\"00:12:51.565\" data-spk=\"0\" data-label=\"Jason\">the profitability was significantly up for.<\/span><\/p>\n<p><small>[12:52]<\/small>\u00a0<span title=\"12:52 - 13:01\" data-start=\"00:12:51.950\" data-end=\"00:13:01.293\" data-spk=\"0\" data-label=\"Jason\">For the retail business for this segment so I want to say no for North America they ended up earning like 3.2 billion and earn income.<\/span><br \/><span title=\"13:02 - 13:09\" data-start=\"00:13:01.576\" data-end=\"00:13:09.334\" data-spk=\"0\" data-label=\"Jason\">So you know some quarters they don\u2019t learn any so 3.2 is a healthy number.<\/span><\/p>\n<p><small>[13:10]<\/small>\u00a0<span title=\"13:10 - 13:14\" data-start=\"00:13:10.446\" data-end=\"00:13:13.594\" data-spk=\"0\" data-label=\"Jason\">For their growth and for people that aren\u2019t following it.<\/span><br \/><span title=\"13:14 - 13:26\" data-start=\"00:13:13.775\" data-end=\"00:13:26.459\" data-spk=\"0\" data-label=\"Jason\">Part of these efficiencies is a super interesting story essentially what Amazon has decided and what they now seem to have successfully executed is that having a national Supply.<\/span><\/p>\n<p><small>[13:27]<\/small>\u00a0<span title=\"13:27 - 13:39\" data-start=\"00:13:26.784\" data-end=\"00:13:39.475\" data-spk=\"0\" data-label=\"Jason\">Chain and a national order fulfillment network is not the right way to structure themselves so in the old world they had one order fulfillment system that covered the whole nation you could really want some,\u00a0<\/span><span title=\"13:40 - 13:48\" data-start=\"00:13:39.548\" data-end=\"00:13:47.593\" data-spk=\"0\" data-label=\"Jason\">delicious Green Tea Oreos you know that are only in the warehouse in California and you order those and Amazon figures out had a,\u00a0<\/span><span title=\"13:48 - 13:51\" data-start=\"00:13:47.702\" data-end=\"00:13:51.289\" data-spk=\"0\" data-label=\"Jason\">get those Oreos to you in 2 days from the warehouse in California,\u00a0<\/span><span title=\"13:51 - 14:01\" data-start=\"00:13:51.361\" data-end=\"00:14:00.591\" data-spk=\"0\" data-label=\"Jason\">and increasingly what Amazon said is you know customers really want speed we have to get faster in most cases where promising next day or same day to day is.<\/span><br \/><span title=\"14:01 - 14:08\" data-start=\"00:14:00.760\" data-end=\"00:14:07.585\" data-spk=\"0\" data-label=\"Jason\">Is you know a promise from 10 years ago and in order to do that efficiency efficiently and save money,\u00a0<\/span><span title=\"14:08 - 14:17\" data-start=\"00:14:07.586\" data-end=\"00:14:17.416\" data-spk=\"0\" data-label=\"Jason\">we have to have those Green Tea Oreos really close to Scott to start things off and so we\u2019re going to drop a bomb on our own industry-leading fulfillment Network\u00a0<\/span><span title=\"14:17 - 14:27\" data-start=\"00:14:17.405\" data-end=\"00:14:26.941\" data-spk=\"0\" data-label=\"Jason\">and we\u2019re going to redesign it as a set of regional networks so that the vast majority of good Scott orders come from a much shorter distance and so one of the,\u00a0<\/span><span title=\"14:27 - 14:36\" data-start=\"00:14:26.989\" data-end=\"00:14:35.870\" data-spk=\"0\" data-label=\"Jason\">the impressive results of that effort today is this quarter Amazon said that like despite all this growth and increasing order volumes\u00a0<\/span><span title=\"14:36 - 14:42\" data-start=\"00:14:35.817\" data-end=\"00:14:42.186\" data-spk=\"0\" data-label=\"Jason\">that they actually drove 20% less miles than they did this quarter last year.<\/span><\/p>\n<p><small>[14:42]<\/small>\u00a0<span title=\"14:42 - 14:46\" data-start=\"00:14:42.493\" data-end=\"00:14:45.989\" data-spk=\"0\" data-label=\"Jason\">So they\u2019re very successfully getting the goods,\u00a0<\/span><span title=\"14:46 - 14:56\" data-start=\"00:14:46.116\" data-end=\"00:14:56.019\" data-spk=\"0\" data-label=\"Jason\">closer to the consumer and to put you in put it in perspective how many Goods that is they announced that they now have over 300 million,\u00a0<\/span><span title=\"14:56 - 15:06\" data-start=\"00:14:56.085\" data-end=\"00:15:05.645\" data-spk=\"0\" data-label=\"Jason\">items that are eligible for Amazon Prime and over fifty percent of those items get delivered same day or next day.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:07]<\/small>\u00a0<span title=\"15:07 - 15:16\" data-start=\"00:15:07.130\" data-end=\"00:15:16.089\" data-spk=\"1\" data-label=\"Scot\">Yeah I thought that part was pretty amazing and what they\u2019ve done is they\u2019ve split the country into eight regions they actually were pretty\u00a0<\/span><span title=\"15:16 - 15:25\" data-start=\"00:15:16.077\" data-end=\"00:15:25.373\" data-spk=\"1\" data-label=\"Scot\">and the call to get into some pretty interesting detail on this end and I thought that was interesting because I usually pretty pretty tight-lipped on this so then\u00a0<\/span><span title=\"15:25 - 15:34\" data-start=\"00:15:25.229\" data-end=\"00:15:34.362\" data-spk=\"1\" data-label=\"Scot\">so they\u2019ve taken their National optimization you talked about and they\u2019re almost running each region has its own country so they\u2019re doing more of the load balancing inside of there\u00a0<\/span><span title=\"15:34 - 15:49\" data-start=\"00:15:34.291\" data-end=\"00:15:49.133\" data-spk=\"1\" data-label=\"Scot\">so in addition to the 20 percent fewer miles there touching the packages 20% less and you now get 76 percent of the units are in the union are in the region and just a while ago it was 66.<\/span><\/p>\n<p><small>[15:50]<\/small>\u00a0<span title=\"15:50 - 16:06\" data-start=\"00:15:50.497\" data-end=\"00:16:05.507\" data-spk=\"1\" data-label=\"Scot\">And then what he\u2019s what he\u2019s basically saying is that\u2019s a big efficiency and then within there another efficiency is they\u2019re leveraging the same day where houses so things used to go from these really big distribution centers to the\u00a0<\/span><span title=\"16:05 - 16:12\" data-start=\"00:16:05.334\" data-end=\"00:16:12.292\" data-spk=\"1\" data-label=\"Scot\">smaller ones and now we\u2019re going to these much smaller ones and they can now inject things in there\u00a0<\/span><span title=\"16:12 - 16:18\" data-start=\"00:16:12.130\" data-end=\"00:16:17.832\" data-spk=\"1\" data-label=\"Scot\">and he said those are streamlined and they can get an item from the order coming in\u00a0<\/span><span title=\"16:18 - 16:32\" data-start=\"00:16:17.676\" data-end=\"00:16:31.875\" data-spk=\"1\" data-label=\"Scot\">to delivery in as little as 11 minutes and those are even closer to the consumer so that it\u2019s almost he didn\u2019t say this but I kind of envisioned as eight regions are split up into eight more regions almost with these tiny you know within points being some of these other ones\u00a0<\/span><span title=\"16:32 - 16:41\" data-start=\"00:16:31.804\" data-end=\"00:16:40.667\" data-spk=\"1\" data-label=\"Scot\">they basically said this is working so well we\u2019re going to double the number of these small last-mile fulfillment centers so\u00a0<\/span><span title=\"16:41 - 16:47\" data-start=\"00:16:40.583\" data-end=\"00:16:46.622\" data-spk=\"1\" data-label=\"Scot\">that was I don\u2019t think Wall Street heard that because that\u2019s you know whenever Amazon says double\u00a0<\/span><span title=\"16:47 - 16:55\" data-start=\"00:16:46.604\" data-end=\"00:16:55.449\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a big number because they have like 200 ish of the big fulfillment centers I don\u2019t know how many small ones are but Amazon doubling anything is Nan.<\/span><\/p>\n<p><small>[16:55]<\/small>\u00a0<span title=\"16:55 - 17:02\" data-start=\"00:16:55.461\" data-end=\"00:17:01.975\" data-spk=\"1\" data-label=\"Scot\">Trivial number of dollars they\u2019re going to invest you didn\u2019t say over what time period\u00a0<\/span><span title=\"17:02 - 17:11\" data-start=\"00:17:01.921\" data-end=\"00:17:10.688\" data-spk=\"1\" data-label=\"Scot\">you want your when ordering covid they said they were double and they went from like 120 fulfillment centers took to actually literally doubled those pretty quickly\u00a0<\/span><span title=\"17:11 - 17:17\" data-start=\"00:17:10.676\" data-end=\"00:17:16.841\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s going to be interesting to watch that build-out I haven\u2019t seen one of those I\u2019ve seen them\u00a0<\/span><span title=\"17:17 - 17:27\" data-start=\"00:17:16.751\" data-end=\"00:17:26.936\" data-spk=\"1\" data-label=\"Scot\">Beck\u2019s I haven\u2019t been in one of been on the back end of one to watch the flex drivers that that\u2019s kind of what they used to do for Flex drivers so be interesting to see how they scale that and I would like to go\u00a0<\/span><span title=\"17:27 - 17:38\" data-start=\"00:17:26.823\" data-end=\"00:17:38.288\" data-spk=\"1\" data-label=\"Scot\">got a visit one I don\u2019t I don\u2019t know if any of the dsps which spend a lot of time with dsps here at spiffy so I\u2019ve got to see this side of the world a lot more than I did in the software e-commerce world\u00a0<\/span><span title=\"17:38 - 17:48\" data-start=\"00:17:38.138\" data-end=\"00:17:47.686\" data-spk=\"1\" data-label=\"Scot\">and there at the big fulfillment centers at these delivery stations that are called bolted on the side haven\u2019t seen how they pick up from some of these but I\u2019m making it a mission.<\/span><br \/><span title=\"17:48 - 17:49\" data-start=\"00:17:47.866\" data-end=\"00:17:48.707\" data-spk=\"1\" data-label=\"Scot\">Learn more about this.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:48]<\/small>\u00a0<span title=\"17:48 - 17:52\" data-start=\"00:17:48.407\" data-end=\"00:17:52.427\" data-spk=\"0\" data-label=\"Jason\">Dsps are the third party delivery services that Amazon uses yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[17:52]<\/small>\u00a0<span title=\"17:52 - 17:57\" data-start=\"00:17:52.127\" data-end=\"00:17:57.444\" data-spk=\"1\" data-label=\"Scot\">Delivery service professionals yeah so that was interesting.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:57]<\/small>\u00a0<span title=\"17:57 - 17:58\" data-start=\"00:17:57.175\" data-end=\"00:17:57.811\" data-spk=\"0\" data-label=\"Jason\">And\u00a0<\/span><span title=\"17:58 - 18:16\" data-start=\"00:17:57.763\" data-end=\"00:18:16.445\" data-spk=\"0\" data-label=\"Jason\">a reminder for the big fulfillment centers Amazon actually offers tours you can sign up and get a tour I don\u2019t think they haven\u2019t seen them ever offer tours on any of the other formats but there are some bootleg videos out on the internet if you know where to look I\u2019ll see if I can find some for the show notes\u00a0<\/span><span title=\"18:16 - 18:25\" data-start=\"00:18:16.241\" data-end=\"00:18:24.828\" data-spk=\"0\" data-label=\"Jason\">that that show like like one of the general contractors that builds these facilities put some videos on their website of,\u00a0<\/span><span title=\"18:25 - 18:28\" data-start=\"00:18:24.852\" data-end=\"00:18:27.538\" data-spk=\"0\" data-label=\"Jason\">of the finished facilities before they open.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:28]<\/small>\u00a0<span title=\"18:28 - 18:37\" data-start=\"00:18:28.422\" data-end=\"00:18:36.720\" data-spk=\"1\" data-label=\"Scot\">Yep so that\u2019s kind of the retail business let\u2019s mix it up usually I cover third party but let\u2019s kick it over you to run through them.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:37]<\/small>\u00a0<span title=\"18:37 - 18:46\" data-start=\"00:18:36.660\" data-end=\"00:18:45.583\" data-spk=\"0\" data-label=\"Jason\">Yeah are you okay with me talking about marketplaces I feel like as a Hall of Fame member you you this is like when mess a wet the other guy take the penalty kick.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:45]<\/small>\u00a0<span title=\"18:45 - 18:52\" data-start=\"00:18:45.289\" data-end=\"00:18:51.670\" data-spk=\"1\" data-label=\"Scot\">I\u2019m an auto guy now I don\u2019t know what this what is a 3 P3 what are the three p\u2019s.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:51]<\/small>\u00a0<span title=\"18:51 - 18:57\" data-start=\"00:18:51.370\" data-end=\"00:18:56.778\" data-spk=\"0\" data-label=\"Jason\">Yeah so another milestone for Amazon\u2019s Marketplace.<\/span><br \/><span title=\"18:57 - 19:11\" data-start=\"00:18:57.319\" data-end=\"00:19:10.797\" data-spk=\"0\" data-label=\"Jason\">They hit a new high for the percentage of their total sales that came from third parties so the mix is now 60% third parties 40% first party so that that\u2019s continuing along long-standing trend.<\/span><br \/><span title=\"19:11 - 19:16\" data-start=\"00:19:10.984\" data-end=\"00:19:15.773\" data-spk=\"0\" data-label=\"Jason\">The third party is continuing to grow and being the most important part of the.<\/span><br \/><span title=\"19:16 - 19:25\" data-start=\"00:19:16.032\" data-end=\"00:19:24.528\" data-spk=\"0\" data-label=\"Jason\">The assortment makes at Amazon I don\u2019t have the number in front of me but my memory is that the.<\/span><br \/><span title=\"19:25 - 19:34\" data-start=\"00:19:24.709\" data-end=\"00:19:34.257\" data-spk=\"0\" data-label=\"Jason\">The growth in 3p Services was actually faster than the retail growth as well so sort of implies that the volume went up but also Amazons.<\/span><br \/><span title=\"19:35 - 19:44\" data-start=\"00:19:34.756\" data-end=\"00:19:44.105\" data-spk=\"0\" data-label=\"Jason\">Doing even better at collecting more fees from all those three p providers so that the marketplace continues to be robust and important.<\/span><br \/><span title=\"19:44 - 19:54\" data-start=\"00:19:44.394\" data-end=\"00:19:54.303\" data-spk=\"0\" data-label=\"Jason\">You know one that always gets a lot of the energy on these earnings calls is a WS and there\u2019s kind of an interesting story going going on so so first of all,\u00a0<\/span><span title=\"19:54 - 20:03\" data-start=\"00:19:54.430\" data-end=\"00:20:02.577\" data-spk=\"0\" data-label=\"Jason\">the the Wall Street expectation was for AWS to grow eight percent this quarter and they announced that a WS grew 12% so.<\/span><br \/><span title=\"20:03 - 20:05\" data-start=\"00:20:02.830\" data-end=\"00:20:04.999\" data-spk=\"0\" data-label=\"Jason\">Massive beat from that perspective.<\/span><br \/><span title=\"20:05 - 20:16\" data-start=\"00:20:05.264\" data-end=\"00:20:16.152\" data-spk=\"0\" data-label=\"Jason\">Um and so then you go well is 12% good growth well a year ago they were growing at like 33 percent so twelve percent doesn\u2019t sound all that impressive compared to 33 percent.<\/span><br \/><span title=\"20:16 - 20:19\" data-start=\"00:20:16.435\" data-end=\"00:20:19.084\" data-spk=\"0\" data-label=\"Jason\">But what you have to remember is.<\/span><\/p>\n<p><small>[20:20]<\/small>\u00a0<span title=\"20:20 - 20:27\" data-start=\"00:20:19.608\" data-end=\"00:20:26.848\" data-spk=\"0\" data-label=\"Jason\">The rate of growth has been significantly slowing down quarter after quarter and last quarter q1.<\/span><\/p>\n<p><small>[20:27]<\/small>\u00a0<span title=\"20:27 - 20:33\" data-start=\"00:20:27.311\" data-end=\"00:20:32.755\" data-spk=\"0\" data-label=\"Jason\">That growth was 16 percent and when they announced that growth was 16%,\u00a0<\/span><span title=\"20:33 - 20:45\" data-start=\"00:20:32.882\" data-end=\"00:20:44.839\" data-spk=\"0\" data-label=\"Jason\">they really put dosed a bunch of cold water on investors because they said and we already have a month of data since the end of that quarter and it\u2019s slowed down more since then so I think that really is what spooked.<\/span><br \/><span title=\"20:45 - 21:00\" data-start=\"00:20:45.146\" data-end=\"00:21:00.108\" data-spk=\"0\" data-label=\"Jason\">The the investor community and that\u2019s where that sort of 8% expectation came from so 12 percent growth is kind of an indication that the growth rate although you know swelling down is stabilizing.<\/span><br \/><span title=\"21:00 - 21:08\" data-start=\"00:21:00.325\" data-end=\"00:21:08.166\" data-spk=\"0\" data-label=\"Jason\">Um and I think they\u2019re they don\u2019t give guidance on these individual segments but they.<\/span><br \/><span title=\"21:08 - 21:16\" data-start=\"00:21:08.473\" data-end=\"00:21:16.231\" data-spk=\"0\" data-label=\"Jason\">Made a nod to the fact that we\u2019re probably not going to see the growth rate slowed down dramatically from this,\u00a0<\/span><span title=\"21:16 - 21:19\" data-start=\"00:21:16.327\" data-end=\"00:21:19.421\" data-spk=\"0\" data-label=\"Jason\">they do pay a lot of lip service to the fact that,\u00a0<\/span><span title=\"21:20 - 21:28\" data-start=\"00:21:19.536\" data-end=\"00:21:28.333\" data-spk=\"0\" data-label=\"Jason\">it\u2019s a very big number and you can\u2019t grow in double digits anymore by just getting organic growth that like in order to,\u00a0<\/span><span title=\"21:28 - 21:36\" data-start=\"00:21:28.411\" data-end=\"00:21:35.922\" data-spk=\"0\" data-label=\"Jason\">continue to grow double digits you need to acquire a lot of net new customers and you need to acquire a lot of net new workloads,\u00a0<\/span><span title=\"21:36 - 21:46\" data-start=\"00:21:36.049\" data-end=\"00:21:45.891\" data-spk=\"0\" data-label=\"Jason\">but the good news is you know they have a very robust narrative about why there are a lot of customers and additional workloads to acquire and spoiler alert.<\/span><br \/><span title=\"21:46 - 21:54\" data-start=\"00:21:46.156\" data-end=\"00:21:53.901\" data-spk=\"0\" data-label=\"Jason\">You know a huge amount of them are related to generative Ai and a large language models where.<\/span><\/p>\n<p><small>[21:54]<\/small>\u00a0<span title=\"21:54 - 22:06\" data-start=\"00:21:54.292\" data-end=\"00:22:05.559\" data-spk=\"0\" data-label=\"Jason\">Amazon is investing a lot in things a lot of the future is going to be in these these three hosted layers of AI services that companies use to build AI Solutions on top.<\/span><\/p>\n<p><small>[22:06]<\/small>\u00a0<span title=\"22:06 - 22:15\" data-start=\"00:22:06.293\" data-end=\"00:22:15.336\" data-spk=\"0\" data-label=\"Jason\">So so you know I think their sales focus is going to be is less about getting more money from existing customers and more about getting.<\/span><br \/><span title=\"22:16 - 22:20\" data-start=\"00:22:15.541\" data-end=\"00:22:19.873\" data-spk=\"0\" data-label=\"Jason\">New customers and new workloads on a go-forward basis for a WS,\u00a0<\/span><span title=\"22:20 - 22:27\" data-start=\"00:22:19.987\" data-end=\"00:22:27.492\" data-spk=\"0\" data-label=\"Jason\">um I do want to say you add up the numbers for AWS and it\u2019s 88 billion dollar a year business that\u2019s the Run rate right now.<\/span><br \/><span title=\"22:28 - 22:37\" data-start=\"00:22:27.649\" data-end=\"00:22:37.004\" data-spk=\"0\" data-label=\"Jason\">And they make about 25 percent gross margin on that business so that that 88 billion dollar business is spinning off 21 billion dollars a year in profit.<\/span><br \/><span title=\"22:37 - 22:51\" data-start=\"00:22:37.233\" data-end=\"00:22:50.909\" data-spk=\"0\" data-label=\"Jason\">And everyone always talks about how AWS is by far the most profitable business at Amazon so keep that 21 billion dollar number in the back of your head because the next segment that Amazon talked about is ads,\u00a0<\/span><span title=\"22:51 - 22:58\" data-start=\"00:22:51.036\" data-end=\"00:22:58.367\" data-spk=\"0\" data-label=\"Jason\">and while AWS is growing at 12% they announced that the ad business is growing at 22 percent.<\/span><br \/><span title=\"22:59 - 23:03\" data-start=\"00:22:58.535\" data-end=\"00:23:03.036\" data-spk=\"0\" data-label=\"Jason\">Um so that puts,\u00a0<\/span><span title=\"23:03 - 23:10\" data-start=\"00:23:03.144\" data-end=\"00:23:10.235\" data-spk=\"0\" data-label=\"Jason\">the the ad business at like a 41 42 billion dollar run rate.<\/span><br \/><span title=\"23:10 - 23:16\" data-start=\"00:23:10.421\" data-end=\"00:23:16.298\" data-spk=\"0\" data-label=\"Jason\">And that the speculation is that the ad business is about a 75% gross margin.<\/span><br \/><span title=\"23:16 - 23:25\" data-start=\"00:23:16.497\" data-end=\"00:23:24.909\" data-spk=\"0\" data-label=\"Jason\">Business and so if they\u2019re at a 41 billion dollar run rate that means they\u2019re spinning off 30 billion dollars in profit.<\/span><\/p>\n<p><small>[23:25]<\/small>\u00a0<span title=\"23:25 - 23:33\" data-start=\"00:23:25.276\" data-end=\"00:23:33.033\" data-spk=\"0\" data-label=\"Jason\">For the ads business so Thirty 1 billion dollars in earning come from ads versus 22 billion dollars in.<\/span><br \/><span title=\"23:33 - 23:37\" data-start=\"00:23:33.250\" data-end=\"00:23:36.837\" data-spk=\"0\" data-label=\"Jason\">Or 21 billion dollars in profit from AWS so.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:37.144\" data-end=\"00:23:46.085\" data-spk=\"0\" data-label=\"Jason\">Quit talking about a WS being the most profitable business than Amazon ads is the most profitable business and is growing almost twice as fast.<\/span><br \/><span title=\"23:46 - 23:53\" data-start=\"00:23:46.326\" data-end=\"00:23:52.671\" data-spk=\"0\" data-label=\"Jason\">And there\u2019s another of my favorite facts about that ad business is.<\/span><br \/><span title=\"23:53 - 24:02\" data-start=\"00:23:52.839\" data-end=\"00:24:01.618\" data-spk=\"0\" data-label=\"Jason\">You know so again they\u2019re selling 44 billion dollars worth of ads you know where they get all the eyeballs that they they have to sell those ads.<\/span><\/p>\n<p><small>[24:03]<\/small>\u00a0<span title=\"24:03 - 24:06\" data-start=\"00:24:02.899\" data-end=\"00:24:05.560\" data-spk=\"0\" data-label=\"Jason\">Buy them from Google for 20 billion dollars.<\/span><br \/><span title=\"24:07 - 24:09\" data-start=\"00:24:06.750\" data-end=\"00:24:09.069\" data-spk=\"0\" data-label=\"Jason\">So so here\u2019s like an awesome business,\u00a0<\/span><span title=\"24:09 - 24:21\" data-start=\"00:24:09.070\" data-end=\"00:24:20.541\" data-spk=\"0\" data-label=\"Jason\">the Amazon is one of the largest advertisers in the world they spend twenty billion dollars I\u2019m sorry 22 billion dollars on ads to get people to come to all their services,\u00a0<\/span><span title=\"24:21 - 24:23\" data-start=\"00:24:20.577\" data-end=\"00:24:23.071\" data-spk=\"0\" data-label=\"Jason\">and consume them for profit right so,\u00a0<\/span><span title=\"24:23 - 24:38\" data-start=\"00:24:23.119\" data-end=\"00:24:37.823\" data-spk=\"0\" data-label=\"Jason\">so you run ads and you get people to buy stuff on Amazon you run ads and you get people to sign up for AWS you run ads and you get people to sign up for Amazon Prime Those ads do all this heavy lifting for all these different business units and then after you\u2019ve monetize that,\u00a0<\/span><span title=\"24:38 - 24:49\" data-start=\"00:24:37.925\" data-end=\"00:24:48.976\" data-spk=\"0\" data-label=\"Jason\">that a dollar you then sell that ad dollar back for a profit through this ad business so you want to talk about the network effect and how powerful it is\u00a0<\/span><span title=\"24:49 - 24:56\" data-start=\"00:24:48.778\" data-end=\"00:24:55.640\" data-spk=\"0\" data-label=\"Jason\">this to me is just an an awesome example of business engineering and you know I think.<\/span><br \/><span title=\"24:56 - 25:01\" data-start=\"00:24:56.139\" data-end=\"00:25:00.705\" data-spk=\"0\" data-label=\"Jason\">Often misunderstood aspect of the Amazon profit machine.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:01]<\/small>\u00a0<span title=\"25:01 - 25:12\" data-start=\"00:25:01.493\" data-end=\"00:25:11.768\" data-spk=\"1\" data-label=\"Scot\">Yes pretty amazing quarter for ads the they\u2019re just really Trout\u2019s snap used to be in the conversation and Twitter and it\u2019s really just Facebook Google and it was on it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:11]<\/small>\u00a0<span title=\"25:11 - 25:15\" data-start=\"00:25:11.468\" data-end=\"00:25:14.640\" data-spk=\"0\" data-label=\"Jason\">I mean Amazon\u2019s a much bigger ad business than Microsoft and Bing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:15]<\/small>\u00a0<span title=\"25:15 - 25:23\" data-start=\"00:25:15.043\" data-end=\"00:25:22.903\" data-spk=\"1\" data-label=\"Scot\">Absolutely another tidbit from the call we had talked about this and if you remember we had\u00a0<\/span><span title=\"25:23 - 25:35\" data-start=\"00:25:22.873\" data-end=\"00:25:35.426\" data-spk=\"1\" data-label=\"Scot\">we had a guest on from Guardian baseball and he was talking about this was right one by with prime came out and you were super skeptical that anyone would adopt.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:35]<\/small>\u00a0<span title=\"25:35 - 25:38\" data-start=\"00:25:35.126\" data-end=\"00:25:38.430\" data-spk=\"0\" data-label=\"Jason\">Yeah and what should you do anytime I\u2019m skeptical about a new idea.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:39]<\/small>\u00a0<span title=\"25:39 - 25:40\" data-start=\"00:25:39.020\" data-end=\"00:25:40.455\" data-spk=\"1\" data-label=\"Scot\">Go long on it go.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:40]<\/small>\u00a0<span title=\"25:40 - 25:41\" data-start=\"00:25:40.155\" data-end=\"00:25:41.297\" data-spk=\"0\" data-label=\"Jason\">Invest in it.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:41]<\/small>\u00a0<span title=\"25:41 - 25:43\" data-start=\"00:25:41.285\" data-end=\"00:25:43.490\" data-spk=\"1\" data-label=\"Scot\">Yeah.<\/span><br \/><span title=\"25:44 - 25:58\" data-start=\"00:25:43.665\" data-end=\"00:25:58.326\" data-spk=\"1\" data-label=\"Scot\">So first of all I saw a tweet earlier and this is from everyone\u2019s favorite follow bearded egg F ba and a couple other people had similar tweets but he actually had used the software that scrapes all these websites,\u00a0<\/span><span title=\"25:58 - 26:07\" data-start=\"00:25:58.417\" data-end=\"00:26:07.064\" data-spk=\"1\" data-label=\"Scot\">and he reported there\u2019s over 2,200 sites that now have by with Prime and then jassi\u2019s comments he said quote,\u00a0<\/span><span title=\"26:07 - 26:18\" data-start=\"00:26:07.136\" data-end=\"00:26:17.868\" data-spk=\"1\" data-label=\"Scot\">merchants in early trials use by both Prime saw their Shopper conversion increased 25% on average which makes a real difference in their business Merchants who participated in Prime Day activities,\u00a0<\/span><span title=\"26:18 - 26:22\" data-start=\"00:26:17.970\" data-end=\"00:26:21.708\" data-spk=\"1\" data-label=\"Scot\">experience 10x increase in Daily by with prime orders,\u00a0<\/span><span title=\"26:22 - 26:33\" data-start=\"00:26:21.846\" data-end=\"00:26:33.287\" data-spk=\"1\" data-label=\"Scot\">so there was a knock on effect that if you had by the Prime on your website then people found you and and rattled over and you saw a really nice kind of ripple effect from\u00a0<\/span><span title=\"26:33 - 26:44\" data-start=\"00:26:33.233\" data-end=\"00:26:43.869\" data-spk=\"1\" data-label=\"Scot\">the prime day efforts I thought that was an interesting tidbit so they\u2019re like like everything Amazon and I haven\u2019t followed the features but I\u2019m sure if you remember\u00a0<\/span><span title=\"26:44 - 26:52\" data-start=\"00:26:43.858\" data-end=\"00:26:52.246\" data-spk=\"1\" data-label=\"Scot\">Matt was complaining that you couldn\u2019t turn it on and off for certain excuse there was some feedback he had and maybe it didn\u2019t work with attributes\u00a0<\/span><span title=\"26:52 - 27:00\" data-start=\"00:26:52.114\" data-end=\"00:26:59.517\" data-spk=\"1\" data-label=\"Scot\">like a parent-child skews I\u2019m sure they fix all that or else it wouldn\u2019t be on this mini website so it sounds like that\u2019s really getting some some traction.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:00]<\/small>\u00a0<span title=\"27:00 - 27:03\" data-start=\"00:27:00.076\" data-end=\"00:27:02.810\" data-spk=\"0\" data-label=\"Jason\">Yeah I do I still think.<\/span><br \/><span title=\"27:03 - 27:16\" data-start=\"00:27:03.020\" data-end=\"00:27:15.711\" data-spk=\"0\" data-label=\"Jason\">To cite Lira but my double down on my earlier skepticism there still are some rough edges to the customer experience right so it still is a purse Q experience\u00a0<\/span><span title=\"27:16 - 27:23\" data-start=\"00:27:15.652\" data-end=\"00:27:23.024\" data-spk=\"0\" data-label=\"Jason\">which is a little weird like you know some products on the on the website you can get fast shipping for and some,\u00a0<\/span><span title=\"27:23 - 27:31\" data-start=\"00:27:23.055\" data-end=\"00:27:31.413\" data-spk=\"0\" data-label=\"Jason\">some products you can\u2019t and it\u2019s hard to know what they are until you put them in your cart so that\u2019s kind of the the old shop Runner.<\/span><\/p>\n<p><small>[27:32]<\/small>\u00a0<span title=\"27:32 - 27:40\" data-start=\"00:27:31.858\" data-end=\"00:27:39.970\" data-spk=\"0\" data-label=\"Jason\">For if you will but I do want to say two things both Amazon and Shopify are leaning into these,\u00a0<\/span><span title=\"27:40 - 27:51\" data-start=\"00:27:40.012\" data-end=\"00:27:50.516\" data-spk=\"0\" data-label=\"Jason\">conversion rates way better when you have by with Prime on your website or when you have shop pay on your website and you know you have to ask yourself what they\u2019re comparing that to write because,\u00a0<\/span><span title=\"27:51 - 28:04\" data-start=\"00:27:50.600\" data-end=\"00:28:03.700\" data-spk=\"0\" data-label=\"Jason\">it should surprise no one that conversion rate when the customer has stored payment information available is much higher than when they don\u2019t have stored payment information so the magic question is if you already had shop,\u00a0<\/span><span title=\"28:04 - 28:13\" data-start=\"00:28:03.838\" data-end=\"00:28:12.851\" data-spk=\"0\" data-label=\"Jason\">pay and PayPal on your site and then you added by with prime did by with prime perform 25% better than PayPal.<\/span><br \/><span title=\"28:13 - 28:21\" data-start=\"00:28:13.104\" data-end=\"00:28:20.970\" data-spk=\"0\" data-label=\"Jason\">Um or are they only saying by with prime prefer performs better than nothing because performing better than nothing isn\u2019t,\u00a0<\/span><span title=\"28:21 - 28:29\" data-start=\"00:28:21.078\" data-end=\"00:28:29.497\" data-spk=\"0\" data-label=\"Jason\">quite as impressive in my book and I do want to say well well they are making progress with by with Prime and the 2500,\u00a0<\/span><span title=\"28:30 - 28:39\" data-start=\"00:28:29.509\" data-end=\"00:28:38.648\" data-spk=\"0\" data-label=\"Jason\">Merchants is impressive just a reminder there\u2019s 2.5 million merchants on Amazon so the fact that 2,500 of them\u00a0<\/span><span title=\"28:39 - 28:42\" data-start=\"00:28:38.571\" data-end=\"00:28:42.170\" data-spk=\"0\" data-label=\"Jason\">are using it you know does not exactly mean it\u2019s caught fire.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:44]<\/small>\u00a0<span title=\"28:44 - 28:46\" data-start=\"00:28:43.877\" data-end=\"00:28:45.661\" data-spk=\"1\" data-label=\"Scot\">So still skeptical.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:46]<\/small>\u00a0<span title=\"28:46 - 28:51\" data-start=\"00:28:45.673\" data-end=\"00:28:51.490\" data-spk=\"0\" data-label=\"Jason\">Yes so again what should you do go double down on the go along.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:49]<\/small>\u00a0<span title=\"28:49 - 28:54\" data-start=\"00:28:49.495\" data-end=\"00:28:53.825\" data-spk=\"1\" data-label=\"Scot\">Short Amazon Jason you short Amazon I\u2019ll go alone.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:54]<\/small>\u00a0<span title=\"28:54 - 28:55\" data-start=\"00:28:53.575\" data-end=\"00:28:54.711\" data-spk=\"0\" data-label=\"Jason\">Yeah that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:55]<\/small>\u00a0<span title=\"28:55 - 28:59\" data-start=\"00:28:55.134\" data-end=\"00:28:58.538\" data-spk=\"1\" data-label=\"Scot\">Prime is not going to work thesis and I\u2019ll go on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:58]<\/small>\u00a0<span title=\"28:58 - 29:03\" data-start=\"00:28:58.238\" data-end=\"00:29:03.478\" data-spk=\"0\" data-label=\"Jason\">Yes I don\u2019t I don\u2019t think you\u2019re giving me helpful investment advice.<\/span><br \/><span title=\"29:06 - 29:15\" data-start=\"00:29:05.912\" data-end=\"00:29:14.967\" data-spk=\"0\" data-label=\"Jason\">So that was all the main stuff I saw in the earnings calls was there anything else you wanted to cover because I think there is a few other tidbits of Amazon news.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:15]<\/small>\u00a0<span title=\"29:15 - 29:22\" data-start=\"00:29:14.673\" data-end=\"00:29:21.737\" data-spk=\"1\" data-label=\"Scot\">I saw Grocery and I had a feeling that your ears were too perked up I I fell asleep during that part so I\u2019ll kick it over to you.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:21]<\/small>\u00a0<span title=\"29:21 - 29:23\" data-start=\"00:29:20.736\" data-end=\"00:29:22.941\" data-spk=\"0\" data-label=\"Jason\">Oh my god do you not eat.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:23]<\/small>\u00a0<span title=\"29:23 - 29:28\" data-start=\"00:29:23.172\" data-end=\"00:29:28.019\" data-spk=\"1\" data-label=\"Scot\">I do but groceries is everyone\u2019s least favorite chore.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:28]<\/small>\u00a0<span title=\"29:28 - 29:35\" data-start=\"00:29:27.719\" data-end=\"00:29:34.845\" data-spk=\"0\" data-label=\"Jason\">Scot doesn\u2019t want to say it but he has people that get his groceries for him that\u2019s what\u2019s going on here he hasn\u2019t been to a grocery store in like 10 years.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:35]<\/small>\u00a0<span title=\"29:35 - 29:37\" data-start=\"00:29:34.545\" data-end=\"00:29:37.417\" data-spk=\"1\" data-label=\"Scot\">Every every meal is from Chick-fil-A so I don\u2019t have to go through.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:37]<\/small>\u00a0<span title=\"29:37 - 29:47\" data-start=\"00:29:37.117\" data-end=\"00:29:46.899\" data-spk=\"0\" data-label=\"Jason\">That seems like it would be a pretty fun for a little while but I have a feeling that the there would wear off,\u00a0<\/span><span title=\"29:47 - 29:57\" data-start=\"00:29:47.014\" data-end=\"00:29:57.433\" data-spk=\"0\" data-label=\"Jason\">so yes Scott you are right I\u2019m super interested in grocery groceries 25 percent of all retail spending it\u2019s the biggest category of spending that Amazon hasn\u2019t won,\u00a0<\/span><span title=\"29:57 - 30:02\" data-start=\"00:29:57.476\" data-end=\"00:30:02.463\" data-spk=\"0\" data-label=\"Jason\">I think it was about 40 years ago that they acquired Whole Foods do I have that right was it 40 years ago.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:03]<\/small>\u00a0<span title=\"30:03 - 30:05\" data-start=\"00:30:03.004\" data-end=\"00:30:04.572\" data-spk=\"1\" data-label=\"Scot\">49<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:05]<\/small>\u00a0<span title=\"30:05 - 30:08\" data-start=\"00:30:04.609\" data-end=\"00:30:08.352\" data-spk=\"0\" data-label=\"Jason\">I\u2019m exaggerating I was over 10 years ago now though.<\/span><br \/><span title=\"30:09 - 30:23\" data-start=\"00:30:08.623\" data-end=\"00:30:22.545\" data-spk=\"0\" data-label=\"Jason\">That they bought at Whole Foods and hopefully just kind of flat since they acquired them it really hasn\u2019t you know turned in anything a reminder Whole Foods is very niche in the grocery space like Whole Foods doesn\u2019t sell Coke they don\u2019t sell Fritos,\u00a0<\/span><span title=\"30:23 - 30:32\" data-start=\"00:30:22.684\" data-end=\"00:30:31.781\" data-spk=\"0\" data-label=\"Jason\">um and they\u2019re only in a handful of big cities so there the the industry leader in organic produce but they\u2019re not a mainstream.<\/span><br \/><span title=\"30:32 - 30:42\" data-start=\"00:30:32.034\" data-end=\"00:30:41.954\" data-spk=\"0\" data-label=\"Jason\">And one of the things so Amazon made a bunch of announcements that they were retooling their grocery experience and changing some of their offerings.<\/span><br \/><span title=\"30:42 - 30:44\" data-start=\"00:30:42.129\" data-end=\"00:30:44.250\" data-spk=\"0\" data-label=\"Jason\">Two days before the earnings call.<\/span><br \/><span title=\"30:44 - 30:54\" data-start=\"00:30:44.461\" data-end=\"00:30:54.099\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll come back to what those announcements were but on the earnings call Andy answered some questions about Grocery and he kind of admitted something interesting,\u00a0<\/span><span title=\"30:54 - 30:59\" data-start=\"00:30:54.249\" data-end=\"00:30:59.152\" data-spk=\"0\" data-label=\"Jason\">Amazon is doing very well at what Amazon usually calls everyday essentials.<\/span><br \/><span title=\"31:00 - 31:12\" data-start=\"00:30:59.501\" data-end=\"00:31:12.036\" data-spk=\"0\" data-label=\"Jason\">And I think the Brian the CFO call that non-climate controlled Goods right so all these shelf-stable things that you tend to buy from a grocery store but you don\u2019t actually eat.<\/span><br \/><span title=\"31:12 - 31:21\" data-start=\"00:31:12.301\" data-end=\"00:31:20.941\" data-spk=\"0\" data-label=\"Jason\">Um Amazon\u2019s pretty good at selling and growing fast and they have a big chunk of that business they are not good at selling.<\/span><\/p>\n<p><small>[31:21]<\/small>\u00a0<span title=\"31:21 - 31:27\" data-start=\"00:31:21.495\" data-end=\"00:31:27.089\" data-spk=\"0\" data-label=\"Jason\">Perishables they\u2019re not good at Selling climate-controlled Stuff they\u2019re not good at selling fresh food online.<\/span><br \/><span title=\"31:27 - 31:32\" data-start=\"00:31:27.281\" data-end=\"00:31:32.034\" data-spk=\"0\" data-label=\"Jason\">Um and what Andy said in answer to one of the analysts questions was,\u00a0<\/span><span title=\"31:32 - 31:46\" data-start=\"00:31:32.137\" data-end=\"00:31:45.524\" data-spk=\"0\" data-label=\"Jason\">to really meaningfully capture sharing grocery you have to have a broad offering in all the areas of grocery not just the everyday essentials and we don\u2019t believe you can win.<\/span><br \/><span title=\"31:46 - 31:52\" data-start=\"00:31:45.717\" data-end=\"00:31:52.375\" data-spk=\"0\" data-label=\"Jason\">With a broad assortment of groceries without a national footprint of stores.<\/span><\/p>\n<p><small>[31:53]<\/small>\u00a0<span title=\"31:53 - 32:04\" data-start=\"00:31:52.634\" data-end=\"00:32:04.183\" data-spk=\"0\" data-label=\"Jason\">So you know he kind of conceded that the Fulfillment center model and the multi-tiered regional Warehouse model that Amazon is building out.<\/span><br \/><span title=\"32:04 - 32:13\" data-start=\"00:32:04.423\" data-end=\"00:32:13.346\" data-spk=\"0\" data-label=\"Jason\">Is not particularly well suited for the grocery mix and so he said so you know we need to figure out a grocery,\u00a0<\/span><span title=\"32:13 - 32:22\" data-start=\"00:32:13.407\" data-end=\"00:32:22.318\" data-spk=\"0\" data-label=\"Jason\">and we kind of concluded what we\u2019ve rolled out over the last few years at Amazon Fresh is not a winning grocery concept so we put we put a hold on growth,\u00a0<\/span><span title=\"32:22 - 32:31\" data-start=\"00:32:22.457\" data-end=\"00:32:30.707\" data-spk=\"0\" data-label=\"Jason\">we went back to the drawing board we invented a bunch of new experiences and now we\u2019re testing those new experiences to see if they are,\u00a0<\/span><span title=\"32:31 - 32:42\" data-start=\"00:32:30.767\" data-end=\"00:32:41.763\" data-spk=\"0\" data-label=\"Jason\">more appealing to Consumers so the First Market to get these new experiences is Chicago so they just remodeled the the Amazon Fresh stores here in Chicago I\u2019m going to go visit one soon.<\/span><br \/><span title=\"32:42 - 32:56\" data-start=\"00:32:41.962\" data-end=\"00:32:55.855\" data-spk=\"0\" data-label=\"Jason\">But they\u2019ve essentially they\u2019ve changed the assortment quite a bit they\u2019ve added more private label and they\u2019ve added more National brands for a grocery store Amazon Fresh doors were really kind of a limited assortment grocery store and so it sounds like.<\/span><\/p>\n<p><small>[32:56]<\/small>\u00a0<span title=\"32:56 - 32:59\" data-start=\"00:32:56.119\" data-end=\"00:32:59.292\" data-spk=\"0\" data-label=\"Jason\">They\u2019re moving they didn\u2019t say numbers but in my mind,\u00a0<\/span><span title=\"32:59 - 33:10\" data-start=\"00:32:59.442\" data-end=\"00:33:09.525\" data-spk=\"0\" data-label=\"Jason\">they were like a twelve thousand SQ grocer and Kroger is like a 20,000 SQ grocer so they\u2019re there it sounds like they\u2019re moving up to that 20,000 skus.<\/span><\/p>\n<p><small>[33:10]<\/small>\u00a0<span title=\"33:10 - 33:15\" data-start=\"00:33:10.115\" data-end=\"00:33:14.993\" data-spk=\"0\" data-label=\"Jason\">And they\u2019re testing a bunch of new amenities,\u00a0<\/span><span title=\"33:15 - 33:28\" data-start=\"00:33:15.090\" data-end=\"00:33:28.406\" data-spk=\"0\" data-label=\"Jason\">and one of the big problems you have in grocery especially when consumers are being really cost-conscious is consumers walk into a grocery store with a budget and they want to make sure they don\u2019t overspend that budget.<\/span><br \/><span title=\"33:29 - 33:35\" data-start=\"00:33:28.556\" data-end=\"00:33:34.841\" data-spk=\"0\" data-label=\"Jason\">And just walk out grocery stores you actually don\u2019t find out how much you spent until 15 minutes after you\u2019ve left the store.<\/span><\/p>\n<p><small>[33:35]<\/small>\u00a0<span title=\"33:35 - 33:40\" data-start=\"00:33:35.329\" data-end=\"00:33:40.400\" data-spk=\"0\" data-label=\"Jason\">Which is an awful experience if you\u2019re trying to make sure you stay under 100 dollars.<\/span><br \/><span title=\"33:41 - 33:52\" data-start=\"00:33:40.605\" data-end=\"00:33:52.316\" data-spk=\"0\" data-label=\"Jason\">And so one of the amenities they\u2019ve rolled out is on these Dash cards these digital cards that they let you use in the store they now have a real time running total of what\u2019s in your cart so for the first time you can see.<\/span><\/p>\n<p><small>[33:53]<\/small>\u00a0<span title=\"33:53 - 33:58\" data-start=\"00:33:52.707\" data-end=\"00:33:58.199\" data-spk=\"0\" data-label=\"Jason\">You know how much you spent so there\u2019s a bunch of experiences like that I\u2019ll get a better feel for what the new ones are.<\/span><br \/><span title=\"33:58 - 34:12\" data-start=\"00:33:58.397\" data-end=\"00:34:12.206\" data-spk=\"0\" data-label=\"Jason\">When I go visit but they\u2019re starting to Pilot new grocery Concepts and they\u2019re you know they\u2019ve kind of conceded that they need to scale one of these brick-and-mortar Concepts nationally before they can really be a.<\/span><br \/><span title=\"34:12 - 34:17\" data-start=\"00:34:12.435\" data-end=\"00:34:16.953\" data-spk=\"0\" data-label=\"Jason\">A meaningful winner in the digital grocery space.<\/span><br \/><span title=\"34:17 - 34:31\" data-start=\"00:34:17.104\" data-end=\"00:34:30.942\" data-spk=\"0\" data-label=\"Jason\">But they made a couple other big changes in grocery to one of the biggest complaints and one of the stupidest things about Amazon\u2019s grocery is before you shop for groceries in Amazon you need to get an org chart and understand how Amazon\u2019s organized because,\u00a0<\/span><span title=\"34:31 - 34:40\" data-start=\"00:34:31.069\" data-end=\"00:34:40.106\" data-spk=\"0\" data-label=\"Jason\">you have to decide in advance if you\u2019re shopping online at Whole Foods or Amazon Fresh and guess what most customers don\u2019t understand the distinction between those two things,\u00a0<\/span><span title=\"34:40 - 34:50\" data-start=\"00:34:40.233\" data-end=\"00:34:49.841\" data-spk=\"0\" data-label=\"Jason\">and so they had separate carts you actually have three cards on the Amazon website you have a general merchandise Encarta gross Amazon Fresh cart and a Whole Foods car,\u00a0<\/span><span title=\"34:50 - 34:56\" data-start=\"00:34:49.925\" data-end=\"00:34:56.433\" data-spk=\"0\" data-label=\"Jason\">and it can be really confusing because you just click add to cart on a bunch of stuff and then you go look at your cart and it\u2019s not there because it\u2019s in one of the other car.<\/span><br \/><span title=\"34:57 - 35:00\" data-start=\"00:34:56.770\" data-end=\"00:35:00.363\" data-spk=\"0\" data-label=\"Jason\">So they announced that they\u2019re moving to a universal cart.<\/span><br \/><span title=\"35:01 - 35:10\" data-start=\"00:35:00.561\" data-end=\"00:35:10.296\" data-spk=\"0\" data-label=\"Jason\">I haven\u2019t seen it yet so I can\u2019t speak to exactly what it looks like I have a few a name mean a universal grocery cart I don\u2019t think they\u2019re actually going to mix it in with general merchandise but.<\/span><\/p>\n<p><small>[35:11]<\/small>\u00a0<span title=\"35:11 - 35:19\" data-start=\"00:35:10.861\" data-end=\"00:35:18.900\" data-spk=\"0\" data-label=\"Jason\">Will be eager to see that and then the other announcement they made that is I\u2019m not I mean I just don\u2019t think it\u2019s as big a deal is,\u00a0<\/span><span title=\"35:19 - 35:32\" data-start=\"00:35:19.015\" data-end=\"00:35:31.736\" data-spk=\"0\" data-label=\"Jason\">um they have opened up grocery delivery from Amazon Fresh to non-prime members so so prior to this week you had to be a prompt Amazon prime number to order from from Amazon Fresh.<\/span><br \/><span title=\"35:32 - 35:39\" data-start=\"00:35:31.935\" data-end=\"00:35:38.923\" data-spk=\"0\" data-label=\"Jason\">And this is kind of interesting because this is a further erosion of Amazon Prime benefits you used to get free delivery,\u00a0<\/span><span title=\"35:39 - 35:45\" data-start=\"00:35:39.013\" data-end=\"00:35:45.473\" data-spk=\"0\" data-label=\"Jason\">um with Amazon Prime for groceries and about a year ago Amazon caved to try to get more profit,\u00a0<\/span><span title=\"35:46 - 35:57\" data-start=\"00:35:45.521\" data-end=\"00:35:56.818\" data-spk=\"0\" data-label=\"Jason\">and they added a delivery fee even if you\u2019re a Prime member but they said you can only get delivery of your Prime member now they\u2019re they\u2019re taking that benefit off the scale and I just point that out because.<\/span><br \/><span title=\"35:57 - 36:06\" data-start=\"00:35:57.059\" data-end=\"00:36:06.156\" data-spk=\"0\" data-label=\"Jason\">Amazon\u2019s ordinarily so good at adding new benefits to Prime is kind of rare to see them taking benefits away from Prime so I think that\u2019s interesting in the.<\/span><br \/><span title=\"36:06 - 36:13\" data-start=\"00:36:06.451\" data-end=\"00:36:13.144\" data-spk=\"0\" data-label=\"Jason\">The grocery space anything else that I missed or the jumped out at you about grocery Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:13]<\/small>\u00a0<span title=\"36:13 - 36:17\" data-start=\"00:36:13.475\" data-end=\"00:36:16.570\" data-spk=\"1\" data-label=\"Scot\">No I thought it was you know.<\/span><br \/><span title=\"36:17 - 36:31\" data-start=\"00:36:17.117\" data-end=\"00:36:30.697\" data-spk=\"1\" data-label=\"Scot\">A lot of people would expect him to throw in the towel because they\u2019ve closed some of these physical store experiments and Jesse did that but they still seem committed to grocery at least the four star or what was that start.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:30]<\/small>\u00a0<span title=\"36:30 - 36:32\" data-start=\"00:36:30.397\" data-end=\"00:36:31.556\" data-spk=\"0\" data-label=\"Jason\">Yeah five star.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:31]<\/small>\u00a0<span title=\"36:31 - 36:35\" data-start=\"00:36:31.364\" data-end=\"00:36:34.831\" data-spk=\"1\" data-label=\"Scot\">Faster that is the closed all those right.<\/span><br \/><span title=\"36:36 - 36:49\" data-start=\"00:36:36.100\" data-end=\"00:36:49.463\" data-spk=\"1\" data-label=\"Scot\">And the trimming back the just walk out stores so it\u2019s interesting to see that there they they see something in grocery or it\u2019s just such a big tan they feel like they have to obviously they have Whole Foods but.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:50]<\/small>\u00a0<span title=\"36:50 - 37:00\" data-start=\"00:36:49.602\" data-end=\"00:36:59.631\" data-spk=\"0\" data-label=\"Jason\">Yeah I do think it\u2019s one of one of their big bets and it was interesting like in some of the narrative Andy kind of he threw something at the grocery teams under the bus.<\/span><br \/><span title=\"37:00 - 37:09\" data-start=\"00:36:59.799\" data-end=\"00:37:08.584\" data-spk=\"0\" data-label=\"Jason\">You know like a lot of his complaints about the Amazon Fresh stores is he\u2019s like we just weren\u2019t good grocery operators that like are.<\/span><br \/><span title=\"37:09 - 37:16\" data-start=\"00:37:08.759\" data-end=\"00:37:16.384\" data-spk=\"0\" data-label=\"Jason\">Our inputs as he called it just weren\u2019t good like the the inventory turns the,\u00a0<\/span><span title=\"37:16 - 37:25\" data-start=\"00:37:16.493\" data-end=\"00:37:24.670\" data-spk=\"0\" data-label=\"Jason\">you know the inventory waste the labor cost that you know all those things weren\u2019t where they needed to be to be a competitive grocery store\u00a0<\/span><span title=\"37:25 - 37:32\" data-start=\"00:37:24.557\" data-end=\"00:37:32.140\" data-spk=\"0\" data-label=\"Jason\">and there\u2019s I\u2019m sure a lot of traditional grocers that were listening to this call going amen Andy we told you groceries are really brutal,\u00a0<\/span><span title=\"37:32 - 37:38\" data-start=\"00:37:32.212\" data-end=\"00:37:37.500\" data-spk=\"0\" data-label=\"Jason\">difficult Cutthroat business and you won\u2019t find it as easy as some of the other businesses you\u2019ve dominated so,\u00a0<\/span><span title=\"37:38 - 37:43\" data-start=\"00:37:37.620\" data-end=\"00:37:43.413\" data-spk=\"0\" data-label=\"Jason\">I still want to bet against Amazon I still think they\u2019re ultimately going to be a big player in grocery but.<\/span><\/p>\n<p><small>[37:53]<\/small>\u00a0<span title=\"37:53 - 38:07\" data-start=\"00:37:52.877\" data-end=\"00:38:07.419\" data-spk=\"0\" data-label=\"Jason\">And then one other to me really interesting tidbit is Healthcare that Amazon announced last week a new National Healthcare offering which is telemedicine.<\/span><br \/><span title=\"38:08 - 38:12\" data-start=\"00:38:07.624\" data-end=\"00:38:11.601\" data-spk=\"0\" data-label=\"Jason\">Um service and that\u2019s attached to Amazon Pharmacy.<\/span><br \/><span title=\"38:12 - 38:23\" data-start=\"00:38:11.788\" data-end=\"00:38:22.994\" data-spk=\"0\" data-label=\"Jason\">Um so this used to be an in-house experiment that they use to provide health benefits to a bunch of Amazon employees but and then they started offering it to.<\/span><br \/><span title=\"38:23 - 38:28\" data-start=\"00:38:23.145\" data-end=\"00:38:28.186\" data-spk=\"0\" data-label=\"Jason\">You know a few other employers that they had Healthcare agreements with,\u00a0<\/span><span title=\"38:28 - 38:41\" data-start=\"00:38:28.307\" data-end=\"00:38:40.799\" data-spk=\"0\" data-label=\"Jason\">but now they\u2019ve made it a national authoring that\u2019s available to everyone so you know if you if you need some prescription or you need some some medical advice and you don\u2019t want to go in and see a doctor you can\u2019t get an appointment.<\/span><br \/><span title=\"38:41 - 38:48\" data-start=\"00:38:40.968\" data-end=\"00:38:48.269\" data-spk=\"0\" data-label=\"Jason\">You can you do now use this Amazon Health Service to get a fast and easy.<\/span><br \/><span title=\"38:48 - 38:54\" data-start=\"00:38:48.485\" data-end=\"00:38:53.623\" data-spk=\"0\" data-label=\"Jason\">Um Health Care visit so you know we know Amazon has been kind of.<\/span><br \/><span title=\"38:54 - 39:01\" data-start=\"00:38:53.803\" data-end=\"00:39:00.785\" data-spk=\"0\" data-label=\"Jason\">Kicking the tires on the healthcare industry and they\u2019ve had a couple initiatives they had some Partnerships that they walked away from,\u00a0<\/span><span title=\"39:01 - 39:08\" data-start=\"00:39:00.924\" data-end=\"00:39:07.576\" data-spk=\"0\" data-label=\"Jason\">but there\u2019s another one where it seems like they haven\u2019t given up on the space and they\u2019re still you know rolling out and trying new things.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[39:08]<\/small>\u00a0<span title=\"39:08 - 39:17\" data-start=\"00:39:07.648\" data-end=\"00:39:16.619\" data-spk=\"1\" data-label=\"Scot\">Yeah and I hope they nail this because my my experience with the physical drugstores always terrible.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[39:17]<\/small>\u00a0<span title=\"39:17 - 39:23\" data-start=\"00:39:17.064\" data-end=\"00:39:22.773\" data-spk=\"0\" data-label=\"Jason\">Yeah I am not bullish on physical drug stores so again.<\/span><br \/><span title=\"39:23 - 39:29\" data-start=\"00:39:23.146\" data-end=\"00:39:28.806\" data-spk=\"0\" data-label=\"Jason\">You you know oil listeners now know what they should do for the investment there but like.<\/span><br \/><span title=\"39:30 - 39:39\" data-start=\"00:39:30.284\" data-end=\"00:39:38.847\" data-spk=\"0\" data-label=\"Jason\">You know the drug business used to be a retail business you walked into a pharmacy and you got all your prescriptions today the insurance companies mostly try to force you to use mail order.<\/span><br \/><span title=\"39:39 - 39:42\" data-start=\"00:39:39.460\" data-end=\"00:39:42.194\" data-spk=\"0\" data-label=\"Jason\">Pharmacy said the main reason people had to go to.<\/span><br \/><span title=\"39:42 - 39:50\" data-start=\"00:39:42.345\" data-end=\"00:39:49.615\" data-spk=\"0\" data-label=\"Jason\">Pharmacies has kind of gone away and as a retailer if you don\u2019t have to go there to get a farm prescription filled.<\/span><br \/><span title=\"39:50 - 39:54\" data-start=\"00:39:49.850\" data-end=\"00:39:53.647\" data-spk=\"0\" data-label=\"Jason\">The retail drug stores are awful retailers like they,\u00a0<\/span><span title=\"39:54 - 40:04\" data-start=\"00:39:53.714\" data-end=\"00:40:03.670\" data-spk=\"0\" data-label=\"Jason\">you know they don\u2019t have a good assortment they don\u2019t have a good prize they\u2019re they\u2019re deficient in digital in and if you watch all the moves they\u2019re making,\u00a0<\/span><span title=\"40:04 - 40:12\" data-start=\"00:40:03.725\" data-end=\"00:40:12.113\" data-spk=\"0\" data-label=\"Jason\">the thing that every retail drugstore is trying to do more than anything else is get out of retail and become a Healthcare company and own an insurance.<\/span><br \/><span title=\"40:13 - 40:19\" data-start=\"00:40:12.660\" data-end=\"00:40:19.180\" data-spk=\"0\" data-label=\"Jason\">So you know a lot of the CEOs of these companies now come from the insurance sides of the business and it it just doesn\u2019t seem like.<\/span><br \/><span title=\"40:20 - 40:28\" data-start=\"00:40:19.859\" data-end=\"00:40:27.779\" data-spk=\"0\" data-label=\"Jason\">The long-term future of us retail is to have you know multiple big National drug stores because the model is kind of waning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:28]<\/small>\u00a0<span title=\"40:28 - 40:36\" data-start=\"00:40:28.344\" data-end=\"00:40:36.095\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll I\u2019ll shut a small tear when they all go out of business and I can get things more efficient.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:36]<\/small>\u00a0<span title=\"40:36 - 40:50\" data-start=\"00:40:35.807\" data-end=\"00:40:49.976\" data-spk=\"0\" data-label=\"Jason\">Yeah I think at least one is going to have to survive because there are a lot of impromptu emergency get it right now kind of kind of needs but you know maybe down the road we\u2019ll do a grocery in Pharmacy Deep dive.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:50]<\/small>\u00a0<span title=\"40:50 - 40:55\" data-start=\"00:40:49.923\" data-end=\"00:40:55.270\" data-spk=\"1\" data-label=\"Scot\">Or Amazon will have things so close to you can get it in 15 minutes so you won\u2019t miss it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:55]<\/small>\u00a0<span title=\"40:55 - 41:01\" data-start=\"00:40:55.024\" data-end=\"00:41:01.129\" data-spk=\"0\" data-label=\"Jason\">Yeah you know one thing I will say like I thought you were going to say I won\u2019t feel bad if Amazon sells this because Healthcare in America.<\/span><br \/><span title=\"41:02 - 41:14\" data-start=\"00:41:01.526\" data-end=\"00:41:13.652\" data-spk=\"0\" data-label=\"Jason\">Royally screwed and a lot of people you know don\u2019t have in can\u2019t afford access to it so certainly it would be good if they fix that I will say Amazon rule that a service similar to a Walmart service which is really beneficial,\u00a0<\/span><span title=\"41:14 - 41:25\" data-start=\"00:41:13.731\" data-end=\"00:41:25.027\" data-spk=\"0\" data-label=\"Jason\">they\u2019re now offering generic versions of most chronic prescriptions for a flat five dollar fee and so one thing that has approved a lot in the United States in the last two years.<\/span><br \/><span title=\"41:25 - 41:33\" data-start=\"00:41:25.250\" data-end=\"00:41:33.073\" data-spk=\"0\" data-label=\"Jason\">Between Walmart and Amazon and actually like a big startup that Mark Cuban is running is a lot of these.<\/span><br \/><span title=\"41:33 - 41:40\" data-start=\"00:41:33.302\" data-end=\"00:41:39.761\" data-spk=\"0\" data-label=\"Jason\">You know prescriptions that were Out Of Reach for a lot of low-income people are becoming more affordable which is certainly a good thing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:40]<\/small>\u00a0<span title=\"41:40 - 41:44\" data-start=\"00:41:39.528\" data-end=\"00:41:44.142\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll take care of them but I\u2019d need my experience you better too.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:44]<\/small>\u00a0<span title=\"41:44 - 41:47\" data-start=\"00:41:44.191\" data-end=\"00:41:47.351\" data-spk=\"0\" data-label=\"Jason\">See how I found a way to end the show on a happy note.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:47]<\/small>\u00a0<span title=\"41:47 - 41:50\" data-start=\"00:41:47.093\" data-end=\"00:41:49.610\" data-spk=\"1\" data-label=\"Scot\">Yeah World Peace.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:50]<\/small>\u00a0<span title=\"41:50 - 41:57\" data-start=\"00:41:49.671\" data-end=\"00:41:57.146\" data-spk=\"0\" data-label=\"Jason\">Yeah and that you know last week we had a slightly shorter show and listeners told this they loved getting a little bit less of us and so\u00a0<\/span><span title=\"41:57 - 42:06\" data-start=\"00:41:57.014\" data-end=\"00:42:06.027\" data-spk=\"0\" data-label=\"Jason\">miraculously we have done it again we brought in a voluminous Amazon earnings call in a pithy 41 minutes,\u00a0<\/span><span title=\"42:06 - 42:14\" data-start=\"00:42:06.094\" data-end=\"00:42:13.731\" data-spk=\"0\" data-label=\"Jason\">so if you\u2019d like to reward us for our brevity the best way to do that would be to jump on iTunes and give us that five-star review.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[42:14]<\/small>\u00a0<span title=\"42:14 - 42:21\" data-start=\"00:42:13.947\" data-end=\"00:42:20.659\" data-spk=\"1\" data-label=\"Scot\">Thanks everyone we hope you enjoyed this Amazon Q2 earnings results and until next time.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[42:21]<\/small>\u00a0<span title=\"42:21 - 42:23\" data-start=\"00:42:20.684\" data-end=\"00:42:23.051\" data-spk=\"0\" data-label=\"Jason\">Happy Commercing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 308 is breakdown of Amazon\u2019s Q2 2023 earnings. Subscribe: ????? Amazon reported a strong […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-10077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10077"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A weekly podcast with the latest e-commerce news and events. Episode 308 is breakdown of Amazon\u2019s Q2 2023 earnings.<\/p>\n
<\/p>\nSubscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon reported a strong quarter across the board for Q2, soundly exceeding analyst expectations and retail industry averages. In this episode we break down the 1p and 3p retail performance, AWS, and the Ads. We go into depth around Amazon disruption reorganization (to a regional model), Amazon\u2019s newest efforts in grocery, and health care.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 308 of the Jason & Scot show was recorded on Thursday, August 4, 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapterT\" class=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.473\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show\u00a0<\/span><span title=\"0:25 - 0:40\" data-start=\"00:00:25.377\" data-end=\"00:00:39.564\" data-spk=\"0\" data-label=\"Jason\">this is episode a 308 being recorded on Thursday August 3rd 2023 that\u2019s a lot of Threes I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:40]<\/small>\u00a0<span title=\"0:40 - 0:51\" data-start=\"00:00:39.600\" data-end=\"00:00:51.498\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason and Scott showed listeners well Jason today is one of my four favorite days of the year it is Amazon earnings day.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:51]<\/small>\u00a0<span title=\"0:51 - 0:54\" data-start=\"00:00:51.342\" data-end=\"00:00:54.382\" data-spk=\"0\" data-label=\"Jason\">I was going to guess it\u2019s the 4th Halloween okay.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:54]<\/small>\u00a0<span title=\"0:54 - 1:05\" data-start=\"00:00:54.088\" data-end=\"00:01:05.367\" data-spk=\"1\" data-label=\"Scot\">Nope good guess and today was a real doozy so we have a lot to talk about and of course it wouldn\u2019t be a Jason and Scot show without.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:05]<\/small>\u00a0<span title=\"1:05 - 1:18\" data-start=\"00:01:05.175\" data-end=\"00:01:18.412\" data-spk=\"0\" data-label=\"Jason\">Amazon news your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:18]<\/small>\u00a0<span title=\"1:18 - 1:25\" data-start=\"00:01:18.112\" data-end=\"00:01:25.383\" data-spk=\"1\" data-label=\"Scot\">That\u2019s right sometimes I hear from listeners why do you guys spend so much time talking about Amazon well\u00a0<\/span><span title=\"1:25 - 1:31\" data-start=\"00:01:25.245\" data-end=\"00:01:30.995\" data-spk=\"1\" data-label=\"Scot\">my rationale is a it\u2019s one of my favorite subjects did be\u00a0<\/span><span title=\"1:31 - 1:45\" data-start=\"00:01:30.882\" data-end=\"00:01:44.858\" data-spk=\"1\" data-label=\"Scot\">not only is Amazon the biggest retailer but it represents over half of e-commerce and for our listeners I think their data is pretty much the standard compared to even anything like comscore or adobe,\u00a0<\/span><span title=\"1:45 - 1:48\" data-start=\"00:01:44.859\" data-end=\"00:01:47.977\" data-spk=\"1\" data-label=\"Scot\">just by definition of them having so much data\u00a0<\/span><span title=\"1:48 - 2:03\" data-start=\"00:01:47.857\" data-end=\"00:02:02.705\" data-spk=\"1\" data-label=\"Scot\">that it is the basically the best source for what\u2019s going on and then given our macro environment we\u2019re at the tail end of the last show you were talking about how it\u2019s setting up for kind of a bad holiday so\u00a0<\/span><span title=\"2:03 - 2:12\" data-start=\"00:02:02.562\" data-end=\"00:02:11.935\" data-spk=\"1\" data-label=\"Scot\">we\u2019re heading into this it\u2019s a critical quarter and for me Q to see what Amazon is done really sets us up for the back half of the year.<\/span><br \/><span title=\"2:12 - 2:14\" data-start=\"00:02:12.254\" data-end=\"00:02:13.564\" data-spk=\"1\" data-label=\"Scot\">And especially holiday.<\/span><br \/><span title=\"2:14 - 2:23\" data-start=\"00:02:13.738\" data-end=\"00:02:22.806\" data-spk=\"1\" data-label=\"Scot\">So kind of a canary in the coal mine and right now there\u2019s all this confusing data coming out about the consumer you see things that sentiment is down\u00a0<\/span><span title=\"2:23 - 2:33\" data-start=\"00:02:22.668\" data-end=\"00:02:32.576\" data-spk=\"1\" data-label=\"Scot\">travel to starting to tip over housing is slowing so there\u2019s some negative but yet credit card spend is going pretty well\u00a0<\/span><span title=\"2:32 - 2:38\" data-start=\"00:02:32.451\" data-end=\"00:02:37.564\" data-spk=\"1\" data-label=\"Scot\">and so this is probably the best read we\u2019re going to get on the consumer heading into holiday.<\/span><\/p>\n<p><small>[2:39]<\/small>\u00a0<span title=\"2:39 - 2:45\" data-start=\"00:02:38.538\" data-end=\"00:02:44.540\" data-spk=\"1\" data-label=\"Scot\">So I think of it as Scott foreshadowing the whole industry that\u2019s why we like to spend a lot of time on it,\u00a0<\/span><span title=\"2:45 - 2:51\" data-start=\"00:02:44.691\" data-end=\"00:02:51.000\" data-spk=\"1\" data-label=\"Scot\">so the other thing I\u2019ll point out is it\u2019s been kind of a rough period for Amazon the last,\u00a0<\/span><span title=\"2:51 - 3:01\" data-start=\"00:02:51.025\" data-end=\"00:03:00.819\" data-spk=\"1\" data-label=\"Scot\">probably 6\/4 a day that things have slowed down post covid they\u2019ve struggled they\u2019ve done some layoffs but having watched Amazon if we zoom zoom out\u00a0<\/span><span title=\"3:01 - 3:04\" data-start=\"00:03:00.753\" data-end=\"00:03:03.962\" data-spk=\"1\" data-label=\"Scot\">having followed them since 97\u00a0<\/span><span title=\"3:04 - 3:16\" data-start=\"00:03:03.944\" data-end=\"00:03:15.986\" data-spk=\"1\" data-label=\"Scot\">they\u2019re really good at reading the room and if the market and the externalities are saying you\u2019re free to invest they will invest like crazy and you know and by saying that I mean they\u2019ll focus on Revenue growth\u00a0<\/span><span title=\"3:16 - 3:25\" data-start=\"00:03:15.854\" data-end=\"00:03:24.861\" data-spk=\"1\" data-label=\"Scot\">implementing infrastructure but then when the macro turns \u2013 and they can move to harvest pretty quickly so,\u00a0<\/span><span title=\"3:25 - 3:39\" data-start=\"00:03:24.994\" data-end=\"00:03:38.598\" data-spk=\"1\" data-label=\"Scot\">a lot of that kind of goes as good as Wall Street so Wall Street will love them and give them a lot of rope and they\u2019ll invest invest invest and then while she starts to worry they\u2019re like oh my gosh this is scary your spending so much things are doing this and then\u00a0<\/span><span title=\"3:38 - 3:45\" data-start=\"00:03:38.466\" data-end=\"00:03:44.902\" data-spk=\"1\" data-label=\"Scot\">they will turn very quickly and can then get into Harvest mode and produce results\u00a0<\/span><span title=\"3:45 - 3:56\" data-start=\"00:03:44.818\" data-end=\"00:03:56.247\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a really a big theme for this quarter so that\u2019s part of the set of the other part of the setup is we have some eCommerce data coming into this what is that,\u00a0<\/span><span title=\"3:56 - 4:00\" data-start=\"00:03:56.343\" data-end=\"00:04:00.105\" data-spk=\"1\" data-label=\"Scot\">what are those tea leaves tell us before we jump into Amazon.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:00]<\/small>\u00a0<span title=\"4:00 - 4:09\" data-start=\"00:03:59.805\" data-end=\"00:04:09.347\" data-spk=\"0\" data-label=\"Jason\">Yeah so we have data from the US Department of Commerce through June and it is a really complicated story so that\u00a0<\/span><span title=\"4:09 - 4:22\" data-start=\"00:04:09.245\" data-end=\"00:04:21.948\" data-spk=\"0\" data-label=\"Jason\">the top line is a little bit of a worrisome sign so year-to-date January through June of this year retail sales are 1.9 percent higher than they were during that same period last year\u00a0<\/span><span title=\"4:22 - 4:23\" data-start=\"00:04:21.786\" data-end=\"00:04:23.426\" data-spk=\"0\" data-label=\"Jason\">so\u00a0<\/span><span title=\"4:23 - 4:32\" data-start=\"00:04:23.480\" data-end=\"00:04:31.953\" data-spk=\"0\" data-label=\"Jason\">time now to put that in perspective in the 10 years leading up to covid we average retail growth of 4% a year so so far this year\u00a0<\/span><span title=\"4:32 - 4:39\" data-start=\"00:04:31.791\" data-end=\"00:04:38.581\" data-spk=\"0\" data-label=\"Jason\">the growth is less than half of the industry average and then the last three years of growth the last 3 years of Cook\u00a0<\/span><span title=\"4:38 - 4:48\" data-start=\"00:04:38.461\" data-end=\"00:04:48.490\" data-spk=\"0\" data-label=\"Jason\">post covid were the biggest three years of retail growth in the history of retail so we had these three monster years and now for the first time we have a six month period That\u2019s,\u00a0<\/span><span title=\"4:49 - 4:53\" data-start=\"00:04:48.502\" data-end=\"00:04:53.002\" data-spk=\"0\" data-label=\"Jason\">well off the average and,\u00a0<\/span><span title=\"4:53 - 5:01\" data-start=\"00:04:53.045\" data-end=\"00:05:00.994\" data-spk=\"0\" data-label=\"Jason\">Q2 was worse than q1 now you know people always say well what about inflation in these numbers\u00a0<\/span><span title=\"5:01 - 5:09\" data-start=\"00:05:00.857\" data-end=\"00:05:08.764\" data-spk=\"0\" data-label=\"Jason\">if you adjust all these numbers back to 2019 dollars to sort of take inflation out of it,\u00a0<\/span><span title=\"5:09 - 5:15\" data-start=\"00:05:08.861\" data-end=\"00:05:14.659\" data-spk=\"0\" data-label=\"Jason\">retail sales this year are actually down 2.8 percent from last year so so.<\/span><\/p>\n<p><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:23\" data-start=\"00:05:14.792\" data-end=\"00:05:23.468\" data-spk=\"0\" data-label=\"Jason\">All of the Mir growth we have this year is really due to its unusually high inflation now big caveat there,\u00a0<\/span><span title=\"5:24 - 5:32\" data-start=\"00:05:23.565\" data-end=\"00:05:31.953\" data-spk=\"0\" data-label=\"Jason\">the information news is actually pretty solid in inflation in June is only up three percent year over year which.<\/span><\/p>\n<p><small>[5:32]<\/small>\u00a0<span title=\"5:32 - 5:39\" data-start=\"00:05:32.254\" data-end=\"00:05:38.942\" data-spk=\"0\" data-label=\"Jason\">You know before all this inflation stuff started the Fed was always trying to keep inflation between two point two and three percent so.<\/span><\/p>\n<p><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:47\" data-start=\"00:05:39.255\" data-end=\"00:05:47.481\" data-spk=\"0\" data-label=\"Jason\">Information down and three percent if it if it stays down there is pretty encouraging but from a retail standpoint,\u00a0<\/span><span title=\"5:48 - 5:51\" data-start=\"00:05:47.577\" data-end=\"00:05:50.828\" data-spk=\"0\" data-label=\"Jason\">you have this weird thing you have the macroeconomics getting better\u00a0<\/span><span title=\"5:51 - 5:59\" data-start=\"00:05:50.810\" data-end=\"00:05:59.282\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a lot more economists saying we\u2019re not going into a recession we somehow managed a soft Landing you\u2019ve got the inflation numbers coming way down\u00a0<\/span><span title=\"5:59 - 6:11\" data-start=\"00:05:59.241\" data-end=\"00:06:11.222\" data-spk=\"0\" data-label=\"Jason\">all the wages and employment numbers have continued to be robust so you\u2019re all these favorable macroeconomics and now the consumer has stopped spending and you hear every retail are talking about how,\u00a0<\/span><span title=\"6:11 - 6:19\" data-start=\"00:06:11.295\" data-end=\"00:06:19.287\" data-spk=\"0\" data-label=\"Jason\">consumers are trading down a cheaper Goods they\u2019re buying more needs and less wants and all of these sorts of things and so.<\/span><br \/><span title=\"6:20 - 6:25\" data-start=\"00:06:19.503\" data-end=\"00:06:24.815\" data-spk=\"0\" data-label=\"Jason\">If you if you kind of look at the retail industry average.<\/span><br \/><span title=\"6:26 - 6:35\" data-start=\"00:06:25.500\" data-end=\"00:06:34.784\" data-spk=\"0\" data-label=\"Jason\">There are two retailers that have hit consistently been outperforming the industry average and those two retailers are Walmart and Amazon which are the two,\u00a0<\/span><span title=\"6:35 - 6:38\" data-start=\"00:06:34.929\" data-end=\"00:06:37.771\" data-spk=\"0\" data-label=\"Jason\">largest retailers in the United States of America.<\/span><br \/><span title=\"6:38 - 6:50\" data-start=\"00:06:37.921\" data-end=\"00:06:50.107\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s some controversy over who\u2019s actually bigger but we\u2019ll leave that for another show if the bottom line is if the two biggest retailers in the market are both outperforming the industry average.<\/span><br \/><span title=\"6:50 - 6:54\" data-start=\"00:06:50.372\" data-end=\"00:06:53.995\" data-spk=\"0\" data-label=\"Jason\">That\u2019s a bad sign for the rest of the retailers.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:54]<\/small>\u00a0<span title=\"6:54 - 6:56\" data-start=\"00:06:53.719\" data-end=\"00:06:55.509\" data-spk=\"1\" data-label=\"Scot\">Someone\u2019s losing share.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:55]<\/small>\u00a0<span title=\"6:55 - 7:02\" data-start=\"00:06:55.209\" data-end=\"00:07:02.053\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and I would note we don\u2019t talk about it a ton on the show but then there\u2019s two Chinese companies that are.<\/span><br \/><span title=\"7:02 - 7:11\" data-start=\"00:07:02.258\" data-end=\"00:07:11.019\" data-spk=\"0\" data-label=\"Jason\">Dramatically grabbing share really quick so she and and and Tim ooh so you know outside of those four.<\/span><br \/><span title=\"7:11 - 7:16\" data-start=\"00:07:11.254\" data-end=\"00:07:15.742\" data-spk=\"0\" data-label=\"Jason\">It\u2019s not looking super up to Mystic for,\u00a0<\/span><span title=\"7:16 - 7:29\" data-start=\"00:07:15.820\" data-end=\"00:07:28.992\" data-spk=\"0\" data-label=\"Jason\">for retail so I was super curious to hear not only how Amazon did but what they\u2019re what guidance they gave for Q3 and what they were seeing in terms of consumer spending because we do have this weird paradox.<\/span><br \/><span title=\"7:29 - 7:31\" data-start=\"00:07:29.365\" data-end=\"00:07:31.191\" data-spk=\"0\" data-label=\"Jason\">Macroeconomics getting better,\u00a0<\/span><span title=\"7:31 - 7:41\" data-start=\"00:07:31.288\" data-end=\"00:07:40.680\" data-spk=\"0\" data-label=\"Jason\">but retail spending getting worse so that being said like what what did Amazon report Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:40]<\/small>\u00a0<span title=\"7:40 - 7:52\" data-start=\"00:07:40.380\" data-end=\"00:07:52.121\" data-spk=\"1\" data-label=\"Scot\">Well it\u2019s an interesting quarter because again for like the last six quarters are 18 months it\u2019s been kind of using Wall Street language Wall Street always comes in with expectations and\u00a0<\/span><span title=\"7:52 - 8:01\" data-start=\"00:07:52.031\" data-end=\"00:08:01.333\" data-spk=\"1\" data-label=\"Scot\">then you either meet those beat them or miss them and or sometimes I\u2019ll call it in line if you meet their expectations well this was this was\u00a0<\/span><span title=\"8:01 - 8:06\" data-start=\"00:08:01.213\" data-end=\"00:08:05.545\" data-spk=\"1\" data-label=\"Scot\">pretty much an unprecedented four-way beat\u00a0<\/span><span title=\"8:05 - 8:17\" data-start=\"00:08:05.353\" data-end=\"00:08:16.680\" data-spk=\"1\" data-label=\"Scot\">with a raise and that\u2019s that last part is what about next quarter so the current quarter is did you how did you do and then did you for future Revenue\u00a0<\/span><span title=\"8:17 - 8:21\" data-start=\"00:08:16.560\" data-end=\"00:08:21.415\" data-spk=\"1\" data-label=\"Scot\">expectations did you stay in line with those or did you raise them so this was kind of like\u00a0<\/span><span title=\"8:21 - 8:29\" data-start=\"00:08:21.271\" data-end=\"00:08:28.788\" data-spk=\"1\" data-label=\"Scot\">one of the best quarters you can have using all the Wall Street language and I say a four way beat so number one is earnings per share,\u00a0<\/span><span title=\"8:29 - 8:41\" data-start=\"00:08:28.801\" data-end=\"00:08:40.746\" data-spk=\"1\" data-label=\"Scot\">while she was expecting 35 cents and they handily beat that at 65 cents so that\u2019s the first one the second one is revenue revenue came in at 134 billion versus 131a clear beat.<\/span><\/p>\n<p><small>[8:41]<\/small>\u00a0<span title=\"8:41 - 8:48\" data-start=\"00:08:41.161\" data-end=\"00:08:48.047\" data-spk=\"1\" data-label=\"Scot\">AWS Revenue there was a lot of worry around this because Microsoft was really showing their\u00a0<\/span><span title=\"8:48 - 8:55\" data-start=\"00:08:47.994\" data-end=\"00:08:55.252\" data-spk=\"1\" data-label=\"Scot\">first of all Microsoft had to break out as your separately for the first time and it used to be all clumped in together in this kind of cloud bucket,\u00a0<\/span><span title=\"8:55 - 9:01\" data-start=\"00:08:55.373\" data-end=\"00:09:01.489\" data-spk=\"1\" data-label=\"Scot\">where they could kind of have office they\u2019re hiding what was going on with Azure so now that Microsoft had to call,\u00a0<\/span><span title=\"9:02 - 9:07\" data-start=\"00:09:01.622\" data-end=\"00:09:07.288\" data-spk=\"1\" data-label=\"Scot\">carve out Azure it has been slowing down very dramatically so everyone was very worried about that\u00a0<\/span><span title=\"9:07 - 9:12\" data-start=\"00:09:07.181\" data-end=\"00:09:11.735\" data-spk=\"1\" data-label=\"Scot\">a WS beat the expectation was 21.8 and they came in at 22.<\/span><br \/><span title=\"9:12 - 9:18\" data-start=\"00:09:11.916\" data-end=\"00:09:18.381\" data-spk=\"1\" data-label=\"Scot\">I will talk a little bit more about the growth things and some other color there third-party exceeded expectation\u00a0<\/span><span title=\"9:18 - 9:28\" data-start=\"00:09:18.243\" data-end=\"00:09:28.470\" data-spk=\"1\" data-label=\"Scot\">the only thing that was really kind of in line is online store Revenue but the margin improvements if you can\u2019t go back to that EPS were so dramatic that everyone was fine with Alan being I think it was like.<\/span><\/p>\n<p><small>[9:30]<\/small>\u00a0<span title=\"9:30 - 9:32\" data-start=\"00:09:29.564\" data-end=\"00:09:32.010\" data-spk=\"1\" data-label=\"Scot\">Point two percent miss or something it was like\u00a0<\/span><span title=\"9:32 - 9:42\" data-start=\"00:09:31.938\" data-end=\"00:09:41.918\" data-spk=\"1\" data-label=\"Scot\">basically in line so that was the only piece that didn\u2019t beat and everyone was fine with that because all these other things really swamped the outcome there and then\u00a0<\/span><span title=\"9:42 - 9:45\" data-start=\"00:09:41.895\" data-end=\"00:09:45.001\" data-spk=\"1\" data-label=\"Scot\">to cap that off the midpoint\u00a0<\/span><span title=\"9:45 - 9:57\" data-start=\"00:09:44.815\" data-end=\"00:09:57.356\" data-spk=\"1\" data-label=\"Scot\">we\u2019ll talk about it but this represents about 11% growth all in for this quarter and the next quarter they guide for growth for 11 to 13 so they\u2019re basically saying hey we beat your expectations this quarter\u00a0<\/span><span title=\"9:57 - 10:08\" data-start=\"00:09:57.230\" data-end=\"00:10:08.196\" data-spk=\"1\" data-label=\"Scot\">and things are accelerating into Q3 so and then they also on the bottom line that guided up for next quarter as well so that went really really well\u00a0<\/span><span title=\"10:08 - 10:10\" data-start=\"00:10:08.064\" data-end=\"00:10:09.831\" data-spk=\"1\" data-label=\"Scot\">um and\u00a0<\/span><span title=\"10:10 - 10:18\" data-start=\"00:10:09.711\" data-end=\"00:10:18.370\" data-spk=\"1\" data-label=\"Scot\">that was a pretty amazing so let\u2019s peel the onion and see what we can learn you want to take us through the retail business.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:18]<\/small>\u00a0<span title=\"10:18 - 10:22\" data-start=\"00:10:18.070\" data-end=\"00:10:22.065\" data-spk=\"0\" data-label=\"Jason\">Yeah for sure so the\u00a0<\/span><span title=\"10:22 - 10:33\" data-start=\"00:10:22.054\" data-end=\"00:10:33.482\" data-spk=\"0\" data-label=\"Jason\">the retail business globally grew 11% so that last year this in this quarter they grew nine percent so accelerated growth,\u00a0<\/span><span title=\"10:34 - 10:42\" data-start=\"00:10:33.597\" data-end=\"00:10:41.739\" data-spk=\"0\" data-label=\"Jason\">North America grew 11 per sent an international grew ten percent\u00a0<\/span><span title=\"10:42 - 10:53\" data-start=\"00:10:41.661\" data-end=\"00:10:52.874\" data-spk=\"0\" data-label=\"Jason\">International really struggle this time last year they actually had a 12% decline last year and so so in general pretty robust growth now,\u00a0<\/span><span title=\"10:53 - 11:02\" data-start=\"00:10:52.880\" data-end=\"00:11:02.212\" data-spk=\"0\" data-label=\"Jason\">these are the revenue numbers which returned mine everyone Amazons and Marketplace they don\u2019t report all of their sales as Revenue they only report,\u00a0<\/span><span title=\"11:02 - 11:08\" data-start=\"00:11:02.290\" data-end=\"00:11:08.395\" data-spk=\"0\" data-label=\"Jason\">one piece sales and then the fees they earn on 3-piece sales so it\u2019s not it\u2019s not a perfect.<\/span><\/p>\n<p><small>[11:09]<\/small>\u00a0<span title=\"11:09 - 11:16\" data-start=\"00:11:08.834\" data-end=\"00:11:16.201\" data-spk=\"0\" data-label=\"Jason\">Now match to to the sort of Industry retail data I said but it\u2019s a close approximation so,\u00a0<\/span><span title=\"11:16 - 11:28\" data-start=\"00:11:16.225\" data-end=\"00:11:27.774\" data-spk=\"0\" data-label=\"Jason\">on average retail grows four percent a quarter the last two quarters retails grown you know less than half of that and Amazon comes in at 10 or 11 percent growth.<\/span><br \/><span title=\"11:28 - 11:36\" data-start=\"00:11:27.937\" data-end=\"00:11:35.874\" data-spk=\"0\" data-label=\"Jason\">So that\u2019s you know a pretty healthy outperforming that the industry average is and,\u00a0<\/span><span title=\"11:36 - 11:42\" data-start=\"00:11:35.959\" data-end=\"00:11:41.962\" data-spk=\"0\" data-label=\"Jason\">you\u2019re essentially taking share from the rest of retail now often just a side note.<\/span><br \/><span title=\"11:42 - 11:48\" data-start=\"00:11:42.275\" data-end=\"00:11:48.001\" data-spk=\"0\" data-label=\"Jason\">Obviously the vast majority of Amazon sales are online traditionally online grows much faster than.<\/span><\/p>\n<p><small>[11:48]<\/small>\u00a0<span title=\"11:48 - 11:58\" data-start=\"00:11:48.380\" data-end=\"00:11:57.934\" data-spk=\"0\" data-label=\"Jason\">Brick and mortar so historically we would see ten to fifteen percent online sales but post pandemic that\u2019s actually slowed down quite a bit and so,\u00a0<\/span><span title=\"11:58 - 12:02\" data-start=\"00:11:58.012\" data-end=\"00:12:02.020\" data-spk=\"0\" data-label=\"Jason\">online sales this year are probably averaging around.<\/span><br \/><span title=\"12:02 - 12:10\" data-start=\"00:12:02.327\" data-end=\"00:12:10.331\" data-spk=\"0\" data-label=\"Jason\">Seven and a half our eight percent and so Amazon\u2019s growth not only did it beat brick-and-mortar it actually beat the industry average,\u00a0<\/span><span title=\"12:10 - 12:17\" data-start=\"00:12:10.445\" data-end=\"00:12:16.934\" data-spk=\"0\" data-label=\"Jason\">even for e-commerce so that that is very robust,\u00a0<\/span><span title=\"12:17 - 12:28\" data-start=\"00:12:16.959\" data-end=\"00:12:28.021\" data-spk=\"0\" data-label=\"Jason\">they spent a lot of time both in their their press release and also in their earnings call talking about their focus on efficiencies,\u00a0<\/span><span title=\"12:29 - 12:40\" data-start=\"00:12:29.211\" data-end=\"00:12:39.607\" data-spk=\"0\" data-label=\"Jason\">and you know the all the work and efficiencies reorganization of their supply chain you know changing of Labor models,\u00a0<\/span><span title=\"12:40 - 12:44\" data-start=\"00:12:39.685\" data-end=\"00:12:43.897\" data-spk=\"0\" data-label=\"Jason\">that those others efficiencies are starting to bear fruit because,\u00a0<\/span><span title=\"12:44 - 12:52\" data-start=\"00:12:43.976\" data-end=\"00:12:51.565\" data-spk=\"0\" data-label=\"Jason\">the profitability was significantly up for.<\/span><\/p>\n<p><small>[12:52]<\/small>\u00a0<span title=\"12:52 - 13:01\" data-start=\"00:12:51.950\" data-end=\"00:13:01.293\" data-spk=\"0\" data-label=\"Jason\">For the retail business for this segment so I want to say no for North America they ended up earning like 3.2 billion and earn income.<\/span><br \/><span title=\"13:02 - 13:09\" data-start=\"00:13:01.576\" data-end=\"00:13:09.334\" data-spk=\"0\" data-label=\"Jason\">So you know some quarters they don\u2019t learn any so 3.2 is a healthy number.<\/span><\/p>\n<p><small>[13:10]<\/small>\u00a0<span title=\"13:10 - 13:14\" data-start=\"00:13:10.446\" data-end=\"00:13:13.594\" data-spk=\"0\" data-label=\"Jason\">For their growth and for people that aren\u2019t following it.<\/span><br \/><span title=\"13:14 - 13:26\" data-start=\"00:13:13.775\" data-end=\"00:13:26.459\" data-spk=\"0\" data-label=\"Jason\">Part of these efficiencies is a super interesting story essentially what Amazon has decided and what they now seem to have successfully executed is that having a national Supply.<\/span><\/p>\n<p><small>[13:27]<\/small>\u00a0<span title=\"13:27 - 13:39\" data-start=\"00:13:26.784\" data-end=\"00:13:39.475\" data-spk=\"0\" data-label=\"Jason\">Chain and a national order fulfillment network is not the right way to structure themselves so in the old world they had one order fulfillment system that covered the whole nation you could really want some,\u00a0<\/span><span title=\"13:40 - 13:48\" data-start=\"00:13:39.548\" data-end=\"00:13:47.593\" data-spk=\"0\" data-label=\"Jason\">delicious Green Tea Oreos you know that are only in the warehouse in California and you order those and Amazon figures out had a,\u00a0<\/span><span title=\"13:48 - 13:51\" data-start=\"00:13:47.702\" data-end=\"00:13:51.289\" data-spk=\"0\" data-label=\"Jason\">get those Oreos to you in 2 days from the warehouse in California,\u00a0<\/span><span title=\"13:51 - 14:01\" data-start=\"00:13:51.361\" data-end=\"00:14:00.591\" data-spk=\"0\" data-label=\"Jason\">and increasingly what Amazon said is you know customers really want speed we have to get faster in most cases where promising next day or same day to day is.<\/span><br \/><span title=\"14:01 - 14:08\" data-start=\"00:14:00.760\" data-end=\"00:14:07.585\" data-spk=\"0\" data-label=\"Jason\">Is you know a promise from 10 years ago and in order to do that efficiency efficiently and save money,\u00a0<\/span><span title=\"14:08 - 14:17\" data-start=\"00:14:07.586\" data-end=\"00:14:17.416\" data-spk=\"0\" data-label=\"Jason\">we have to have those Green Tea Oreos really close to Scott to start things off and so we\u2019re going to drop a bomb on our own industry-leading fulfillment Network\u00a0<\/span><span title=\"14:17 - 14:27\" data-start=\"00:14:17.405\" data-end=\"00:14:26.941\" data-spk=\"0\" data-label=\"Jason\">and we\u2019re going to redesign it as a set of regional networks so that the vast majority of good Scott orders come from a much shorter distance and so one of the,\u00a0<\/span><span title=\"14:27 - 14:36\" data-start=\"00:14:26.989\" data-end=\"00:14:35.870\" data-spk=\"0\" data-label=\"Jason\">the impressive results of that effort today is this quarter Amazon said that like despite all this growth and increasing order volumes\u00a0<\/span><span title=\"14:36 - 14:42\" data-start=\"00:14:35.817\" data-end=\"00:14:42.186\" data-spk=\"0\" data-label=\"Jason\">that they actually drove 20% less miles than they did this quarter last year.<\/span><\/p>\n<p><small>[14:42]<\/small>\u00a0<span title=\"14:42 - 14:46\" data-start=\"00:14:42.493\" data-end=\"00:14:45.989\" data-spk=\"0\" data-label=\"Jason\">So they\u2019re very successfully getting the goods,\u00a0<\/span><span title=\"14:46 - 14:56\" data-start=\"00:14:46.116\" data-end=\"00:14:56.019\" data-spk=\"0\" data-label=\"Jason\">closer to the consumer and to put you in put it in perspective how many Goods that is they announced that they now have over 300 million,\u00a0<\/span><span title=\"14:56 - 15:06\" data-start=\"00:14:56.085\" data-end=\"00:15:05.645\" data-spk=\"0\" data-label=\"Jason\">items that are eligible for Amazon Prime and over fifty percent of those items get delivered same day or next day.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:07]<\/small>\u00a0<span title=\"15:07 - 15:16\" data-start=\"00:15:07.130\" data-end=\"00:15:16.089\" data-spk=\"1\" data-label=\"Scot\">Yeah I thought that part was pretty amazing and what they\u2019ve done is they\u2019ve split the country into eight regions they actually were pretty\u00a0<\/span><span title=\"15:16 - 15:25\" data-start=\"00:15:16.077\" data-end=\"00:15:25.373\" data-spk=\"1\" data-label=\"Scot\">and the call to get into some pretty interesting detail on this end and I thought that was interesting because I usually pretty pretty tight-lipped on this so then\u00a0<\/span><span title=\"15:25 - 15:34\" data-start=\"00:15:25.229\" data-end=\"00:15:34.362\" data-spk=\"1\" data-label=\"Scot\">so they\u2019ve taken their National optimization you talked about and they\u2019re almost running each region has its own country so they\u2019re doing more of the load balancing inside of there\u00a0<\/span><span title=\"15:34 - 15:49\" data-start=\"00:15:34.291\" data-end=\"00:15:49.133\" data-spk=\"1\" data-label=\"Scot\">so in addition to the 20 percent fewer miles there touching the packages 20% less and you now get 76 percent of the units are in the union are in the region and just a while ago it was 66.<\/span><\/p>\n<p><small>[15:50]<\/small>\u00a0<span title=\"15:50 - 16:06\" data-start=\"00:15:50.497\" data-end=\"00:16:05.507\" data-spk=\"1\" data-label=\"Scot\">And then what he\u2019s what he\u2019s basically saying is that\u2019s a big efficiency and then within there another efficiency is they\u2019re leveraging the same day where houses so things used to go from these really big distribution centers to the\u00a0<\/span><span title=\"16:05 - 16:12\" data-start=\"00:16:05.334\" data-end=\"00:16:12.292\" data-spk=\"1\" data-label=\"Scot\">smaller ones and now we\u2019re going to these much smaller ones and they can now inject things in there\u00a0<\/span><span title=\"16:12 - 16:18\" data-start=\"00:16:12.130\" data-end=\"00:16:17.832\" data-spk=\"1\" data-label=\"Scot\">and he said those are streamlined and they can get an item from the order coming in\u00a0<\/span><span title=\"16:18 - 16:32\" data-start=\"00:16:17.676\" data-end=\"00:16:31.875\" data-spk=\"1\" data-label=\"Scot\">to delivery in as little as 11 minutes and those are even closer to the consumer so that it\u2019s almost he didn\u2019t say this but I kind of envisioned as eight regions are split up into eight more regions almost with these tiny you know within points being some of these other ones\u00a0<\/span><span title=\"16:32 - 16:41\" data-start=\"00:16:31.804\" data-end=\"00:16:40.667\" data-spk=\"1\" data-label=\"Scot\">they basically said this is working so well we\u2019re going to double the number of these small last-mile fulfillment centers so\u00a0<\/span><span title=\"16:41 - 16:47\" data-start=\"00:16:40.583\" data-end=\"00:16:46.622\" data-spk=\"1\" data-label=\"Scot\">that was I don\u2019t think Wall Street heard that because that\u2019s you know whenever Amazon says double\u00a0<\/span><span title=\"16:47 - 16:55\" data-start=\"00:16:46.604\" data-end=\"00:16:55.449\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a big number because they have like 200 ish of the big fulfillment centers I don\u2019t know how many small ones are but Amazon doubling anything is Nan.<\/span><\/p>\n<p><small>[16:55]<\/small>\u00a0<span title=\"16:55 - 17:02\" data-start=\"00:16:55.461\" data-end=\"00:17:01.975\" data-spk=\"1\" data-label=\"Scot\">Trivial number of dollars they\u2019re going to invest you didn\u2019t say over what time period\u00a0<\/span><span title=\"17:02 - 17:11\" data-start=\"00:17:01.921\" data-end=\"00:17:10.688\" data-spk=\"1\" data-label=\"Scot\">you want your when ordering covid they said they were double and they went from like 120 fulfillment centers took to actually literally doubled those pretty quickly\u00a0<\/span><span title=\"17:11 - 17:17\" data-start=\"00:17:10.676\" data-end=\"00:17:16.841\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s going to be interesting to watch that build-out I haven\u2019t seen one of those I\u2019ve seen them\u00a0<\/span><span title=\"17:17 - 17:27\" data-start=\"00:17:16.751\" data-end=\"00:17:26.936\" data-spk=\"1\" data-label=\"Scot\">Beck\u2019s I haven\u2019t been in one of been on the back end of one to watch the flex drivers that that\u2019s kind of what they used to do for Flex drivers so be interesting to see how they scale that and I would like to go\u00a0<\/span><span title=\"17:27 - 17:38\" data-start=\"00:17:26.823\" data-end=\"00:17:38.288\" data-spk=\"1\" data-label=\"Scot\">got a visit one I don\u2019t I don\u2019t know if any of the dsps which spend a lot of time with dsps here at spiffy so I\u2019ve got to see this side of the world a lot more than I did in the software e-commerce world\u00a0<\/span><span title=\"17:38 - 17:48\" data-start=\"00:17:38.138\" data-end=\"00:17:47.686\" data-spk=\"1\" data-label=\"Scot\">and there at the big fulfillment centers at these delivery stations that are called bolted on the side haven\u2019t seen how they pick up from some of these but I\u2019m making it a mission.<\/span><br \/><span title=\"17:48 - 17:49\" data-start=\"00:17:47.866\" data-end=\"00:17:48.707\" data-spk=\"1\" data-label=\"Scot\">Learn more about this.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:48]<\/small>\u00a0<span title=\"17:48 - 17:52\" data-start=\"00:17:48.407\" data-end=\"00:17:52.427\" data-spk=\"0\" data-label=\"Jason\">Dsps are the third party delivery services that Amazon uses yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[17:52]<\/small>\u00a0<span title=\"17:52 - 17:57\" data-start=\"00:17:52.127\" data-end=\"00:17:57.444\" data-spk=\"1\" data-label=\"Scot\">Delivery service professionals yeah so that was interesting.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:57]<\/small>\u00a0<span title=\"17:57 - 17:58\" data-start=\"00:17:57.175\" data-end=\"00:17:57.811\" data-spk=\"0\" data-label=\"Jason\">And\u00a0<\/span><span title=\"17:58 - 18:16\" data-start=\"00:17:57.763\" data-end=\"00:18:16.445\" data-spk=\"0\" data-label=\"Jason\">a reminder for the big fulfillment centers Amazon actually offers tours you can sign up and get a tour I don\u2019t think they haven\u2019t seen them ever offer tours on any of the other formats but there are some bootleg videos out on the internet if you know where to look I\u2019ll see if I can find some for the show notes\u00a0<\/span><span title=\"18:16 - 18:25\" data-start=\"00:18:16.241\" data-end=\"00:18:24.828\" data-spk=\"0\" data-label=\"Jason\">that that show like like one of the general contractors that builds these facilities put some videos on their website of,\u00a0<\/span><span title=\"18:25 - 18:28\" data-start=\"00:18:24.852\" data-end=\"00:18:27.538\" data-spk=\"0\" data-label=\"Jason\">of the finished facilities before they open.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:28]<\/small>\u00a0<span title=\"18:28 - 18:37\" data-start=\"00:18:28.422\" data-end=\"00:18:36.720\" data-spk=\"1\" data-label=\"Scot\">Yep so that\u2019s kind of the retail business let\u2019s mix it up usually I cover third party but let\u2019s kick it over you to run through them.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:37]<\/small>\u00a0<span title=\"18:37 - 18:46\" data-start=\"00:18:36.660\" data-end=\"00:18:45.583\" data-spk=\"0\" data-label=\"Jason\">Yeah are you okay with me talking about marketplaces I feel like as a Hall of Fame member you you this is like when mess a wet the other guy take the penalty kick.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:45]<\/small>\u00a0<span title=\"18:45 - 18:52\" data-start=\"00:18:45.289\" data-end=\"00:18:51.670\" data-spk=\"1\" data-label=\"Scot\">I\u2019m an auto guy now I don\u2019t know what this what is a 3 P3 what are the three p\u2019s.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:51]<\/small>\u00a0<span title=\"18:51 - 18:57\" data-start=\"00:18:51.370\" data-end=\"00:18:56.778\" data-spk=\"0\" data-label=\"Jason\">Yeah so another milestone for Amazon\u2019s Marketplace.<\/span><br \/><span title=\"18:57 - 19:11\" data-start=\"00:18:57.319\" data-end=\"00:19:10.797\" data-spk=\"0\" data-label=\"Jason\">They hit a new high for the percentage of their total sales that came from third parties so the mix is now 60% third parties 40% first party so that that\u2019s continuing along long-standing trend.<\/span><br \/><span title=\"19:11 - 19:16\" data-start=\"00:19:10.984\" data-end=\"00:19:15.773\" data-spk=\"0\" data-label=\"Jason\">The third party is continuing to grow and being the most important part of the.<\/span><br \/><span title=\"19:16 - 19:25\" data-start=\"00:19:16.032\" data-end=\"00:19:24.528\" data-spk=\"0\" data-label=\"Jason\">The assortment makes at Amazon I don\u2019t have the number in front of me but my memory is that the.<\/span><br \/><span title=\"19:25 - 19:34\" data-start=\"00:19:24.709\" data-end=\"00:19:34.257\" data-spk=\"0\" data-label=\"Jason\">The growth in 3p Services was actually faster than the retail growth as well so sort of implies that the volume went up but also Amazons.<\/span><br \/><span title=\"19:35 - 19:44\" data-start=\"00:19:34.756\" data-end=\"00:19:44.105\" data-spk=\"0\" data-label=\"Jason\">Doing even better at collecting more fees from all those three p providers so that the marketplace continues to be robust and important.<\/span><br \/><span title=\"19:44 - 19:54\" data-start=\"00:19:44.394\" data-end=\"00:19:54.303\" data-spk=\"0\" data-label=\"Jason\">You know one that always gets a lot of the energy on these earnings calls is a WS and there\u2019s kind of an interesting story going going on so so first of all,\u00a0<\/span><span title=\"19:54 - 20:03\" data-start=\"00:19:54.430\" data-end=\"00:20:02.577\" data-spk=\"0\" data-label=\"Jason\">the the Wall Street expectation was for AWS to grow eight percent this quarter and they announced that a WS grew 12% so.<\/span><br \/><span title=\"20:03 - 20:05\" data-start=\"00:20:02.830\" data-end=\"00:20:04.999\" data-spk=\"0\" data-label=\"Jason\">Massive beat from that perspective.<\/span><br \/><span title=\"20:05 - 20:16\" data-start=\"00:20:05.264\" data-end=\"00:20:16.152\" data-spk=\"0\" data-label=\"Jason\">Um and so then you go well is 12% good growth well a year ago they were growing at like 33 percent so twelve percent doesn\u2019t sound all that impressive compared to 33 percent.<\/span><br \/><span title=\"20:16 - 20:19\" data-start=\"00:20:16.435\" data-end=\"00:20:19.084\" data-spk=\"0\" data-label=\"Jason\">But what you have to remember is.<\/span><\/p>\n<p><small>[20:20]<\/small>\u00a0<span title=\"20:20 - 20:27\" data-start=\"00:20:19.608\" data-end=\"00:20:26.848\" data-spk=\"0\" data-label=\"Jason\">The rate of growth has been significantly slowing down quarter after quarter and last quarter q1.<\/span><\/p>\n<p><small>[20:27]<\/small>\u00a0<span title=\"20:27 - 20:33\" data-start=\"00:20:27.311\" data-end=\"00:20:32.755\" data-spk=\"0\" data-label=\"Jason\">That growth was 16 percent and when they announced that growth was 16%,\u00a0<\/span><span title=\"20:33 - 20:45\" data-start=\"00:20:32.882\" data-end=\"00:20:44.839\" data-spk=\"0\" data-label=\"Jason\">they really put dosed a bunch of cold water on investors because they said and we already have a month of data since the end of that quarter and it\u2019s slowed down more since then so I think that really is what spooked.<\/span><br \/><span title=\"20:45 - 21:00\" data-start=\"00:20:45.146\" data-end=\"00:21:00.108\" data-spk=\"0\" data-label=\"Jason\">The the investor community and that\u2019s where that sort of 8% expectation came from so 12 percent growth is kind of an indication that the growth rate although you know swelling down is stabilizing.<\/span><br \/><span title=\"21:00 - 21:08\" data-start=\"00:21:00.325\" data-end=\"00:21:08.166\" data-spk=\"0\" data-label=\"Jason\">Um and I think they\u2019re they don\u2019t give guidance on these individual segments but they.<\/span><br \/><span title=\"21:08 - 21:16\" data-start=\"00:21:08.473\" data-end=\"00:21:16.231\" data-spk=\"0\" data-label=\"Jason\">Made a nod to the fact that we\u2019re probably not going to see the growth rate slowed down dramatically from this,\u00a0<\/span><span title=\"21:16 - 21:19\" data-start=\"00:21:16.327\" data-end=\"00:21:19.421\" data-spk=\"0\" data-label=\"Jason\">they do pay a lot of lip service to the fact that,\u00a0<\/span><span title=\"21:20 - 21:28\" data-start=\"00:21:19.536\" data-end=\"00:21:28.333\" data-spk=\"0\" data-label=\"Jason\">it\u2019s a very big number and you can\u2019t grow in double digits anymore by just getting organic growth that like in order to,\u00a0<\/span><span title=\"21:28 - 21:36\" data-start=\"00:21:28.411\" data-end=\"00:21:35.922\" data-spk=\"0\" data-label=\"Jason\">continue to grow double digits you need to acquire a lot of net new customers and you need to acquire a lot of net new workloads,\u00a0<\/span><span title=\"21:36 - 21:46\" data-start=\"00:21:36.049\" data-end=\"00:21:45.891\" data-spk=\"0\" data-label=\"Jason\">but the good news is you know they have a very robust narrative about why there are a lot of customers and additional workloads to acquire and spoiler alert.<\/span><br \/><span title=\"21:46 - 21:54\" data-start=\"00:21:46.156\" data-end=\"00:21:53.901\" data-spk=\"0\" data-label=\"Jason\">You know a huge amount of them are related to generative Ai and a large language models where.<\/span><\/p>\n<p><small>[21:54]<\/small>\u00a0<span title=\"21:54 - 22:06\" data-start=\"00:21:54.292\" data-end=\"00:22:05.559\" data-spk=\"0\" data-label=\"Jason\">Amazon is investing a lot in things a lot of the future is going to be in these these three hosted layers of AI services that companies use to build AI Solutions on top.<\/span><\/p>\n<p><small>[22:06]<\/small>\u00a0<span title=\"22:06 - 22:15\" data-start=\"00:22:06.293\" data-end=\"00:22:15.336\" data-spk=\"0\" data-label=\"Jason\">So so you know I think their sales focus is going to be is less about getting more money from existing customers and more about getting.<\/span><br \/><span title=\"22:16 - 22:20\" data-start=\"00:22:15.541\" data-end=\"00:22:19.873\" data-spk=\"0\" data-label=\"Jason\">New customers and new workloads on a go-forward basis for a WS,\u00a0<\/span><span title=\"22:20 - 22:27\" data-start=\"00:22:19.987\" data-end=\"00:22:27.492\" data-spk=\"0\" data-label=\"Jason\">um I do want to say you add up the numbers for AWS and it\u2019s 88 billion dollar a year business that\u2019s the Run rate right now.<\/span><br \/><span title=\"22:28 - 22:37\" data-start=\"00:22:27.649\" data-end=\"00:22:37.004\" data-spk=\"0\" data-label=\"Jason\">And they make about 25 percent gross margin on that business so that that 88 billion dollar business is spinning off 21 billion dollars a year in profit.<\/span><br \/><span title=\"22:37 - 22:51\" data-start=\"00:22:37.233\" data-end=\"00:22:50.909\" data-spk=\"0\" data-label=\"Jason\">And everyone always talks about how AWS is by far the most profitable business at Amazon so keep that 21 billion dollar number in the back of your head because the next segment that Amazon talked about is ads,\u00a0<\/span><span title=\"22:51 - 22:58\" data-start=\"00:22:51.036\" data-end=\"00:22:58.367\" data-spk=\"0\" data-label=\"Jason\">and while AWS is growing at 12% they announced that the ad business is growing at 22 percent.<\/span><br \/><span title=\"22:59 - 23:03\" data-start=\"00:22:58.535\" data-end=\"00:23:03.036\" data-spk=\"0\" data-label=\"Jason\">Um so that puts,\u00a0<\/span><span title=\"23:03 - 23:10\" data-start=\"00:23:03.144\" data-end=\"00:23:10.235\" data-spk=\"0\" data-label=\"Jason\">the the ad business at like a 41 42 billion dollar run rate.<\/span><br \/><span title=\"23:10 - 23:16\" data-start=\"00:23:10.421\" data-end=\"00:23:16.298\" data-spk=\"0\" data-label=\"Jason\">And that the speculation is that the ad business is about a 75% gross margin.<\/span><br \/><span title=\"23:16 - 23:25\" data-start=\"00:23:16.497\" data-end=\"00:23:24.909\" data-spk=\"0\" data-label=\"Jason\">Business and so if they\u2019re at a 41 billion dollar run rate that means they\u2019re spinning off 30 billion dollars in profit.<\/span><\/p>\n<p><small>[23:25]<\/small>\u00a0<span title=\"23:25 - 23:33\" data-start=\"00:23:25.276\" data-end=\"00:23:33.033\" data-spk=\"0\" data-label=\"Jason\">For the ads business so Thirty 1 billion dollars in earning come from ads versus 22 billion dollars in.<\/span><br \/><span title=\"23:33 - 23:37\" data-start=\"00:23:33.250\" data-end=\"00:23:36.837\" data-spk=\"0\" data-label=\"Jason\">Or 21 billion dollars in profit from AWS so.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:37.144\" data-end=\"00:23:46.085\" data-spk=\"0\" data-label=\"Jason\">Quit talking about a WS being the most profitable business than Amazon ads is the most profitable business and is growing almost twice as fast.<\/span><br \/><span title=\"23:46 - 23:53\" data-start=\"00:23:46.326\" data-end=\"00:23:52.671\" data-spk=\"0\" data-label=\"Jason\">And there\u2019s another of my favorite facts about that ad business is.<\/span><br \/><span title=\"23:53 - 24:02\" data-start=\"00:23:52.839\" data-end=\"00:24:01.618\" data-spk=\"0\" data-label=\"Jason\">You know so again they\u2019re selling 44 billion dollars worth of ads you know where they get all the eyeballs that they they have to sell those ads.<\/span><\/p>\n<p><small>[24:03]<\/small>\u00a0<span title=\"24:03 - 24:06\" data-start=\"00:24:02.899\" data-end=\"00:24:05.560\" data-spk=\"0\" data-label=\"Jason\">Buy them from Google for 20 billion dollars.<\/span><br \/><span title=\"24:07 - 24:09\" data-start=\"00:24:06.750\" data-end=\"00:24:09.069\" data-spk=\"0\" data-label=\"Jason\">So so here\u2019s like an awesome business,\u00a0<\/span><span title=\"24:09 - 24:21\" data-start=\"00:24:09.070\" data-end=\"00:24:20.541\" data-spk=\"0\" data-label=\"Jason\">the Amazon is one of the largest advertisers in the world they spend twenty billion dollars I\u2019m sorry 22 billion dollars on ads to get people to come to all their services,\u00a0<\/span><span title=\"24:21 - 24:23\" data-start=\"00:24:20.577\" data-end=\"00:24:23.071\" data-spk=\"0\" data-label=\"Jason\">and consume them for profit right so,\u00a0<\/span><span title=\"24:23 - 24:38\" data-start=\"00:24:23.119\" data-end=\"00:24:37.823\" data-spk=\"0\" data-label=\"Jason\">so you run ads and you get people to buy stuff on Amazon you run ads and you get people to sign up for AWS you run ads and you get people to sign up for Amazon Prime Those ads do all this heavy lifting for all these different business units and then after you\u2019ve monetize that,\u00a0<\/span><span title=\"24:38 - 24:49\" data-start=\"00:24:37.925\" data-end=\"00:24:48.976\" data-spk=\"0\" data-label=\"Jason\">that a dollar you then sell that ad dollar back for a profit through this ad business so you want to talk about the network effect and how powerful it is\u00a0<\/span><span title=\"24:49 - 24:56\" data-start=\"00:24:48.778\" data-end=\"00:24:55.640\" data-spk=\"0\" data-label=\"Jason\">this to me is just an an awesome example of business engineering and you know I think.<\/span><br \/><span title=\"24:56 - 25:01\" data-start=\"00:24:56.139\" data-end=\"00:25:00.705\" data-spk=\"0\" data-label=\"Jason\">Often misunderstood aspect of the Amazon profit machine.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:01]<\/small>\u00a0<span title=\"25:01 - 25:12\" data-start=\"00:25:01.493\" data-end=\"00:25:11.768\" data-spk=\"1\" data-label=\"Scot\">Yes pretty amazing quarter for ads the they\u2019re just really Trout\u2019s snap used to be in the conversation and Twitter and it\u2019s really just Facebook Google and it was on it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:11]<\/small>\u00a0<span title=\"25:11 - 25:15\" data-start=\"00:25:11.468\" data-end=\"00:25:14.640\" data-spk=\"0\" data-label=\"Jason\">I mean Amazon\u2019s a much bigger ad business than Microsoft and Bing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:15]<\/small>\u00a0<span title=\"25:15 - 25:23\" data-start=\"00:25:15.043\" data-end=\"00:25:22.903\" data-spk=\"1\" data-label=\"Scot\">Absolutely another tidbit from the call we had talked about this and if you remember we had\u00a0<\/span><span title=\"25:23 - 25:35\" data-start=\"00:25:22.873\" data-end=\"00:25:35.426\" data-spk=\"1\" data-label=\"Scot\">we had a guest on from Guardian baseball and he was talking about this was right one by with prime came out and you were super skeptical that anyone would adopt.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:35]<\/small>\u00a0<span title=\"25:35 - 25:38\" data-start=\"00:25:35.126\" data-end=\"00:25:38.430\" data-spk=\"0\" data-label=\"Jason\">Yeah and what should you do anytime I\u2019m skeptical about a new idea.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:39]<\/small>\u00a0<span title=\"25:39 - 25:40\" data-start=\"00:25:39.020\" data-end=\"00:25:40.455\" data-spk=\"1\" data-label=\"Scot\">Go long on it go.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:40]<\/small>\u00a0<span title=\"25:40 - 25:41\" data-start=\"00:25:40.155\" data-end=\"00:25:41.297\" data-spk=\"0\" data-label=\"Jason\">Invest in it.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:41]<\/small>\u00a0<span title=\"25:41 - 25:43\" data-start=\"00:25:41.285\" data-end=\"00:25:43.490\" data-spk=\"1\" data-label=\"Scot\">Yeah.<\/span><br \/><span title=\"25:44 - 25:58\" data-start=\"00:25:43.665\" data-end=\"00:25:58.326\" data-spk=\"1\" data-label=\"Scot\">So first of all I saw a tweet earlier and this is from everyone\u2019s favorite follow bearded egg F ba and a couple other people had similar tweets but he actually had used the software that scrapes all these websites,\u00a0<\/span><span title=\"25:58 - 26:07\" data-start=\"00:25:58.417\" data-end=\"00:26:07.064\" data-spk=\"1\" data-label=\"Scot\">and he reported there\u2019s over 2,200 sites that now have by with Prime and then jassi\u2019s comments he said quote,\u00a0<\/span><span title=\"26:07 - 26:18\" data-start=\"00:26:07.136\" data-end=\"00:26:17.868\" data-spk=\"1\" data-label=\"Scot\">merchants in early trials use by both Prime saw their Shopper conversion increased 25% on average which makes a real difference in their business Merchants who participated in Prime Day activities,\u00a0<\/span><span title=\"26:18 - 26:22\" data-start=\"00:26:17.970\" data-end=\"00:26:21.708\" data-spk=\"1\" data-label=\"Scot\">experience 10x increase in Daily by with prime orders,\u00a0<\/span><span title=\"26:22 - 26:33\" data-start=\"00:26:21.846\" data-end=\"00:26:33.287\" data-spk=\"1\" data-label=\"Scot\">so there was a knock on effect that if you had by the Prime on your website then people found you and and rattled over and you saw a really nice kind of ripple effect from\u00a0<\/span><span title=\"26:33 - 26:44\" data-start=\"00:26:33.233\" data-end=\"00:26:43.869\" data-spk=\"1\" data-label=\"Scot\">the prime day efforts I thought that was an interesting tidbit so they\u2019re like like everything Amazon and I haven\u2019t followed the features but I\u2019m sure if you remember\u00a0<\/span><span title=\"26:44 - 26:52\" data-start=\"00:26:43.858\" data-end=\"00:26:52.246\" data-spk=\"1\" data-label=\"Scot\">Matt was complaining that you couldn\u2019t turn it on and off for certain excuse there was some feedback he had and maybe it didn\u2019t work with attributes\u00a0<\/span><span title=\"26:52 - 27:00\" data-start=\"00:26:52.114\" data-end=\"00:26:59.517\" data-spk=\"1\" data-label=\"Scot\">like a parent-child skews I\u2019m sure they fix all that or else it wouldn\u2019t be on this mini website so it sounds like that\u2019s really getting some some traction.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:00]<\/small>\u00a0<span title=\"27:00 - 27:03\" data-start=\"00:27:00.076\" data-end=\"00:27:02.810\" data-spk=\"0\" data-label=\"Jason\">Yeah I do I still think.<\/span><br \/><span title=\"27:03 - 27:16\" data-start=\"00:27:03.020\" data-end=\"00:27:15.711\" data-spk=\"0\" data-label=\"Jason\">To cite Lira but my double down on my earlier skepticism there still are some rough edges to the customer experience right so it still is a purse Q experience\u00a0<\/span><span title=\"27:16 - 27:23\" data-start=\"00:27:15.652\" data-end=\"00:27:23.024\" data-spk=\"0\" data-label=\"Jason\">which is a little weird like you know some products on the on the website you can get fast shipping for and some,\u00a0<\/span><span title=\"27:23 - 27:31\" data-start=\"00:27:23.055\" data-end=\"00:27:31.413\" data-spk=\"0\" data-label=\"Jason\">some products you can\u2019t and it\u2019s hard to know what they are until you put them in your cart so that\u2019s kind of the the old shop Runner.<\/span><\/p>\n<p><small>[27:32]<\/small>\u00a0<span title=\"27:32 - 27:40\" data-start=\"00:27:31.858\" data-end=\"00:27:39.970\" data-spk=\"0\" data-label=\"Jason\">For if you will but I do want to say two things both Amazon and Shopify are leaning into these,\u00a0<\/span><span title=\"27:40 - 27:51\" data-start=\"00:27:40.012\" data-end=\"00:27:50.516\" data-spk=\"0\" data-label=\"Jason\">conversion rates way better when you have by with Prime on your website or when you have shop pay on your website and you know you have to ask yourself what they\u2019re comparing that to write because,\u00a0<\/span><span title=\"27:51 - 28:04\" data-start=\"00:27:50.600\" data-end=\"00:28:03.700\" data-spk=\"0\" data-label=\"Jason\">it should surprise no one that conversion rate when the customer has stored payment information available is much higher than when they don\u2019t have stored payment information so the magic question is if you already had shop,\u00a0<\/span><span title=\"28:04 - 28:13\" data-start=\"00:28:03.838\" data-end=\"00:28:12.851\" data-spk=\"0\" data-label=\"Jason\">pay and PayPal on your site and then you added by with prime did by with prime perform 25% better than PayPal.<\/span><br \/><span title=\"28:13 - 28:21\" data-start=\"00:28:13.104\" data-end=\"00:28:20.970\" data-spk=\"0\" data-label=\"Jason\">Um or are they only saying by with prime prefer performs better than nothing because performing better than nothing isn\u2019t,\u00a0<\/span><span title=\"28:21 - 28:29\" data-start=\"00:28:21.078\" data-end=\"00:28:29.497\" data-spk=\"0\" data-label=\"Jason\">quite as impressive in my book and I do want to say well well they are making progress with by with Prime and the 2500,\u00a0<\/span><span title=\"28:30 - 28:39\" data-start=\"00:28:29.509\" data-end=\"00:28:38.648\" data-spk=\"0\" data-label=\"Jason\">Merchants is impressive just a reminder there\u2019s 2.5 million merchants on Amazon so the fact that 2,500 of them\u00a0<\/span><span title=\"28:39 - 28:42\" data-start=\"00:28:38.571\" data-end=\"00:28:42.170\" data-spk=\"0\" data-label=\"Jason\">are using it you know does not exactly mean it\u2019s caught fire.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:44]<\/small>\u00a0<span title=\"28:44 - 28:46\" data-start=\"00:28:43.877\" data-end=\"00:28:45.661\" data-spk=\"1\" data-label=\"Scot\">So still skeptical.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:46]<\/small>\u00a0<span title=\"28:46 - 28:51\" data-start=\"00:28:45.673\" data-end=\"00:28:51.490\" data-spk=\"0\" data-label=\"Jason\">Yes so again what should you do go double down on the go along.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:49]<\/small>\u00a0<span title=\"28:49 - 28:54\" data-start=\"00:28:49.495\" data-end=\"00:28:53.825\" data-spk=\"1\" data-label=\"Scot\">Short Amazon Jason you short Amazon I\u2019ll go alone.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:54]<\/small>\u00a0<span title=\"28:54 - 28:55\" data-start=\"00:28:53.575\" data-end=\"00:28:54.711\" data-spk=\"0\" data-label=\"Jason\">Yeah that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:55]<\/small>\u00a0<span title=\"28:55 - 28:59\" data-start=\"00:28:55.134\" data-end=\"00:28:58.538\" data-spk=\"1\" data-label=\"Scot\">Prime is not going to work thesis and I\u2019ll go on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:58]<\/small>\u00a0<span title=\"28:58 - 29:03\" data-start=\"00:28:58.238\" data-end=\"00:29:03.478\" data-spk=\"0\" data-label=\"Jason\">Yes I don\u2019t I don\u2019t think you\u2019re giving me helpful investment advice.<\/span><br \/><span title=\"29:06 - 29:15\" data-start=\"00:29:05.912\" data-end=\"00:29:14.967\" data-spk=\"0\" data-label=\"Jason\">So that was all the main stuff I saw in the earnings calls was there anything else you wanted to cover because I think there is a few other tidbits of Amazon news.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:15]<\/small>\u00a0<span title=\"29:15 - 29:22\" data-start=\"00:29:14.673\" data-end=\"00:29:21.737\" data-spk=\"1\" data-label=\"Scot\">I saw Grocery and I had a feeling that your ears were too perked up I I fell asleep during that part so I\u2019ll kick it over to you.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:21]<\/small>\u00a0<span title=\"29:21 - 29:23\" data-start=\"00:29:20.736\" data-end=\"00:29:22.941\" data-spk=\"0\" data-label=\"Jason\">Oh my god do you not eat.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:23]<\/small>\u00a0<span title=\"29:23 - 29:28\" data-start=\"00:29:23.172\" data-end=\"00:29:28.019\" data-spk=\"1\" data-label=\"Scot\">I do but groceries is everyone\u2019s least favorite chore.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:28]<\/small>\u00a0<span title=\"29:28 - 29:35\" data-start=\"00:29:27.719\" data-end=\"00:29:34.845\" data-spk=\"0\" data-label=\"Jason\">Scot doesn\u2019t want to say it but he has people that get his groceries for him that\u2019s what\u2019s going on here he hasn\u2019t been to a grocery store in like 10 years.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:35]<\/small>\u00a0<span title=\"29:35 - 29:37\" data-start=\"00:29:34.545\" data-end=\"00:29:37.417\" data-spk=\"1\" data-label=\"Scot\">Every every meal is from Chick-fil-A so I don\u2019t have to go through.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:37]<\/small>\u00a0<span title=\"29:37 - 29:47\" data-start=\"00:29:37.117\" data-end=\"00:29:46.899\" data-spk=\"0\" data-label=\"Jason\">That seems like it would be a pretty fun for a little while but I have a feeling that the there would wear off,\u00a0<\/span><span title=\"29:47 - 29:57\" data-start=\"00:29:47.014\" data-end=\"00:29:57.433\" data-spk=\"0\" data-label=\"Jason\">so yes Scott you are right I\u2019m super interested in grocery groceries 25 percent of all retail spending it\u2019s the biggest category of spending that Amazon hasn\u2019t won,\u00a0<\/span><span title=\"29:57 - 30:02\" data-start=\"00:29:57.476\" data-end=\"00:30:02.463\" data-spk=\"0\" data-label=\"Jason\">I think it was about 40 years ago that they acquired Whole Foods do I have that right was it 40 years ago.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:03]<\/small>\u00a0<span title=\"30:03 - 30:05\" data-start=\"00:30:03.004\" data-end=\"00:30:04.572\" data-spk=\"1\" data-label=\"Scot\">49<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:05]<\/small>\u00a0<span title=\"30:05 - 30:08\" data-start=\"00:30:04.609\" data-end=\"00:30:08.352\" data-spk=\"0\" data-label=\"Jason\">I\u2019m exaggerating I was over 10 years ago now though.<\/span><br \/><span title=\"30:09 - 30:23\" data-start=\"00:30:08.623\" data-end=\"00:30:22.545\" data-spk=\"0\" data-label=\"Jason\">That they bought at Whole Foods and hopefully just kind of flat since they acquired them it really hasn\u2019t you know turned in anything a reminder Whole Foods is very niche in the grocery space like Whole Foods doesn\u2019t sell Coke they don\u2019t sell Fritos,\u00a0<\/span><span title=\"30:23 - 30:32\" data-start=\"00:30:22.684\" data-end=\"00:30:31.781\" data-spk=\"0\" data-label=\"Jason\">um and they\u2019re only in a handful of big cities so there the the industry leader in organic produce but they\u2019re not a mainstream.<\/span><br \/><span title=\"30:32 - 30:42\" data-start=\"00:30:32.034\" data-end=\"00:30:41.954\" data-spk=\"0\" data-label=\"Jason\">And one of the things so Amazon made a bunch of announcements that they were retooling their grocery experience and changing some of their offerings.<\/span><br \/><span title=\"30:42 - 30:44\" data-start=\"00:30:42.129\" data-end=\"00:30:44.250\" data-spk=\"0\" data-label=\"Jason\">Two days before the earnings call.<\/span><br \/><span title=\"30:44 - 30:54\" data-start=\"00:30:44.461\" data-end=\"00:30:54.099\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll come back to what those announcements were but on the earnings call Andy answered some questions about Grocery and he kind of admitted something interesting,\u00a0<\/span><span title=\"30:54 - 30:59\" data-start=\"00:30:54.249\" data-end=\"00:30:59.152\" data-spk=\"0\" data-label=\"Jason\">Amazon is doing very well at what Amazon usually calls everyday essentials.<\/span><br \/><span title=\"31:00 - 31:12\" data-start=\"00:30:59.501\" data-end=\"00:31:12.036\" data-spk=\"0\" data-label=\"Jason\">And I think the Brian the CFO call that non-climate controlled Goods right so all these shelf-stable things that you tend to buy from a grocery store but you don\u2019t actually eat.<\/span><br \/><span title=\"31:12 - 31:21\" data-start=\"00:31:12.301\" data-end=\"00:31:20.941\" data-spk=\"0\" data-label=\"Jason\">Um Amazon\u2019s pretty good at selling and growing fast and they have a big chunk of that business they are not good at selling.<\/span><\/p>\n<p><small>[31:21]<\/small>\u00a0<span title=\"31:21 - 31:27\" data-start=\"00:31:21.495\" data-end=\"00:31:27.089\" data-spk=\"0\" data-label=\"Jason\">Perishables they\u2019re not good at Selling climate-controlled Stuff they\u2019re not good at selling fresh food online.<\/span><br \/><span title=\"31:27 - 31:32\" data-start=\"00:31:27.281\" data-end=\"00:31:32.034\" data-spk=\"0\" data-label=\"Jason\">Um and what Andy said in answer to one of the analysts questions was,\u00a0<\/span><span title=\"31:32 - 31:46\" data-start=\"00:31:32.137\" data-end=\"00:31:45.524\" data-spk=\"0\" data-label=\"Jason\">to really meaningfully capture sharing grocery you have to have a broad offering in all the areas of grocery not just the everyday essentials and we don\u2019t believe you can win.<\/span><br \/><span title=\"31:46 - 31:52\" data-start=\"00:31:45.717\" data-end=\"00:31:52.375\" data-spk=\"0\" data-label=\"Jason\">With a broad assortment of groceries without a national footprint of stores.<\/span><\/p>\n<p><small>[31:53]<\/small>\u00a0<span title=\"31:53 - 32:04\" data-start=\"00:31:52.634\" data-end=\"00:32:04.183\" data-spk=\"0\" data-label=\"Jason\">So you know he kind of conceded that the Fulfillment center model and the multi-tiered regional Warehouse model that Amazon is building out.<\/span><br \/><span title=\"32:04 - 32:13\" data-start=\"00:32:04.423\" data-end=\"00:32:13.346\" data-spk=\"0\" data-label=\"Jason\">Is not particularly well suited for the grocery mix and so he said so you know we need to figure out a grocery,\u00a0<\/span><span title=\"32:13 - 32:22\" data-start=\"00:32:13.407\" data-end=\"00:32:22.318\" data-spk=\"0\" data-label=\"Jason\">and we kind of concluded what we\u2019ve rolled out over the last few years at Amazon Fresh is not a winning grocery concept so we put we put a hold on growth,\u00a0<\/span><span title=\"32:22 - 32:31\" data-start=\"00:32:22.457\" data-end=\"00:32:30.707\" data-spk=\"0\" data-label=\"Jason\">we went back to the drawing board we invented a bunch of new experiences and now we\u2019re testing those new experiences to see if they are,\u00a0<\/span><span title=\"32:31 - 32:42\" data-start=\"00:32:30.767\" data-end=\"00:32:41.763\" data-spk=\"0\" data-label=\"Jason\">more appealing to Consumers so the First Market to get these new experiences is Chicago so they just remodeled the the Amazon Fresh stores here in Chicago I\u2019m going to go visit one soon.<\/span><br \/><span title=\"32:42 - 32:56\" data-start=\"00:32:41.962\" data-end=\"00:32:55.855\" data-spk=\"0\" data-label=\"Jason\">But they\u2019ve essentially they\u2019ve changed the assortment quite a bit they\u2019ve added more private label and they\u2019ve added more National brands for a grocery store Amazon Fresh doors were really kind of a limited assortment grocery store and so it sounds like.<\/span><\/p>\n<p><small>[32:56]<\/small>\u00a0<span title=\"32:56 - 32:59\" data-start=\"00:32:56.119\" data-end=\"00:32:59.292\" data-spk=\"0\" data-label=\"Jason\">They\u2019re moving they didn\u2019t say numbers but in my mind,\u00a0<\/span><span title=\"32:59 - 33:10\" data-start=\"00:32:59.442\" data-end=\"00:33:09.525\" data-spk=\"0\" data-label=\"Jason\">they were like a twelve thousand SQ grocer and Kroger is like a 20,000 SQ grocer so they\u2019re there it sounds like they\u2019re moving up to that 20,000 skus.<\/span><\/p>\n<p><small>[33:10]<\/small>\u00a0<span title=\"33:10 - 33:15\" data-start=\"00:33:10.115\" data-end=\"00:33:14.993\" data-spk=\"0\" data-label=\"Jason\">And they\u2019re testing a bunch of new amenities,\u00a0<\/span><span title=\"33:15 - 33:28\" data-start=\"00:33:15.090\" data-end=\"00:33:28.406\" data-spk=\"0\" data-label=\"Jason\">and one of the big problems you have in grocery especially when consumers are being really cost-conscious is consumers walk into a grocery store with a budget and they want to make sure they don\u2019t overspend that budget.<\/span><br \/><span title=\"33:29 - 33:35\" data-start=\"00:33:28.556\" data-end=\"00:33:34.841\" data-spk=\"0\" data-label=\"Jason\">And just walk out grocery stores you actually don\u2019t find out how much you spent until 15 minutes after you\u2019ve left the store.<\/span><\/p>\n<p><small>[33:35]<\/small>\u00a0<span title=\"33:35 - 33:40\" data-start=\"00:33:35.329\" data-end=\"00:33:40.400\" data-spk=\"0\" data-label=\"Jason\">Which is an awful experience if you\u2019re trying to make sure you stay under 100 dollars.<\/span><br \/><span title=\"33:41 - 33:52\" data-start=\"00:33:40.605\" data-end=\"00:33:52.316\" data-spk=\"0\" data-label=\"Jason\">And so one of the amenities they\u2019ve rolled out is on these Dash cards these digital cards that they let you use in the store they now have a real time running total of what\u2019s in your cart so for the first time you can see.<\/span><\/p>\n<p><small>[33:53]<\/small>\u00a0<span title=\"33:53 - 33:58\" data-start=\"00:33:52.707\" data-end=\"00:33:58.199\" data-spk=\"0\" data-label=\"Jason\">You know how much you spent so there\u2019s a bunch of experiences like that I\u2019ll get a better feel for what the new ones are.<\/span><br \/><span title=\"33:58 - 34:12\" data-start=\"00:33:58.397\" data-end=\"00:34:12.206\" data-spk=\"0\" data-label=\"Jason\">When I go visit but they\u2019re starting to Pilot new grocery Concepts and they\u2019re you know they\u2019ve kind of conceded that they need to scale one of these brick-and-mortar Concepts nationally before they can really be a.<\/span><br \/><span title=\"34:12 - 34:17\" data-start=\"00:34:12.435\" data-end=\"00:34:16.953\" data-spk=\"0\" data-label=\"Jason\">A meaningful winner in the digital grocery space.<\/span><br \/><span title=\"34:17 - 34:31\" data-start=\"00:34:17.104\" data-end=\"00:34:30.942\" data-spk=\"0\" data-label=\"Jason\">But they made a couple other big changes in grocery to one of the biggest complaints and one of the stupidest things about Amazon\u2019s grocery is before you shop for groceries in Amazon you need to get an org chart and understand how Amazon\u2019s organized because,\u00a0<\/span><span title=\"34:31 - 34:40\" data-start=\"00:34:31.069\" data-end=\"00:34:40.106\" data-spk=\"0\" data-label=\"Jason\">you have to decide in advance if you\u2019re shopping online at Whole Foods or Amazon Fresh and guess what most customers don\u2019t understand the distinction between those two things,\u00a0<\/span><span title=\"34:40 - 34:50\" data-start=\"00:34:40.233\" data-end=\"00:34:49.841\" data-spk=\"0\" data-label=\"Jason\">and so they had separate carts you actually have three cards on the Amazon website you have a general merchandise Encarta gross Amazon Fresh cart and a Whole Foods car,\u00a0<\/span><span title=\"34:50 - 34:56\" data-start=\"00:34:49.925\" data-end=\"00:34:56.433\" data-spk=\"0\" data-label=\"Jason\">and it can be really confusing because you just click add to cart on a bunch of stuff and then you go look at your cart and it\u2019s not there because it\u2019s in one of the other car.<\/span><br \/><span title=\"34:57 - 35:00\" data-start=\"00:34:56.770\" data-end=\"00:35:00.363\" data-spk=\"0\" data-label=\"Jason\">So they announced that they\u2019re moving to a universal cart.<\/span><br \/><span title=\"35:01 - 35:10\" data-start=\"00:35:00.561\" data-end=\"00:35:10.296\" data-spk=\"0\" data-label=\"Jason\">I haven\u2019t seen it yet so I can\u2019t speak to exactly what it looks like I have a few a name mean a universal grocery cart I don\u2019t think they\u2019re actually going to mix it in with general merchandise but.<\/span><\/p>\n<p><small>[35:11]<\/small>\u00a0<span title=\"35:11 - 35:19\" data-start=\"00:35:10.861\" data-end=\"00:35:18.900\" data-spk=\"0\" data-label=\"Jason\">Will be eager to see that and then the other announcement they made that is I\u2019m not I mean I just don\u2019t think it\u2019s as big a deal is,\u00a0<\/span><span title=\"35:19 - 35:32\" data-start=\"00:35:19.015\" data-end=\"00:35:31.736\" data-spk=\"0\" data-label=\"Jason\">um they have opened up grocery delivery from Amazon Fresh to non-prime members so so prior to this week you had to be a prompt Amazon prime number to order from from Amazon Fresh.<\/span><br \/><span title=\"35:32 - 35:39\" data-start=\"00:35:31.935\" data-end=\"00:35:38.923\" data-spk=\"0\" data-label=\"Jason\">And this is kind of interesting because this is a further erosion of Amazon Prime benefits you used to get free delivery,\u00a0<\/span><span title=\"35:39 - 35:45\" data-start=\"00:35:39.013\" data-end=\"00:35:45.473\" data-spk=\"0\" data-label=\"Jason\">um with Amazon Prime for groceries and about a year ago Amazon caved to try to get more profit,\u00a0<\/span><span title=\"35:46 - 35:57\" data-start=\"00:35:45.521\" data-end=\"00:35:56.818\" data-spk=\"0\" data-label=\"Jason\">and they added a delivery fee even if you\u2019re a Prime member but they said you can only get delivery of your Prime member now they\u2019re they\u2019re taking that benefit off the scale and I just point that out because.<\/span><br \/><span title=\"35:57 - 36:06\" data-start=\"00:35:57.059\" data-end=\"00:36:06.156\" data-spk=\"0\" data-label=\"Jason\">Amazon\u2019s ordinarily so good at adding new benefits to Prime is kind of rare to see them taking benefits away from Prime so I think that\u2019s interesting in the.<\/span><br \/><span title=\"36:06 - 36:13\" data-start=\"00:36:06.451\" data-end=\"00:36:13.144\" data-spk=\"0\" data-label=\"Jason\">The grocery space anything else that I missed or the jumped out at you about grocery Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:13]<\/small>\u00a0<span title=\"36:13 - 36:17\" data-start=\"00:36:13.475\" data-end=\"00:36:16.570\" data-spk=\"1\" data-label=\"Scot\">No I thought it was you know.<\/span><br \/><span title=\"36:17 - 36:31\" data-start=\"00:36:17.117\" data-end=\"00:36:30.697\" data-spk=\"1\" data-label=\"Scot\">A lot of people would expect him to throw in the towel because they\u2019ve closed some of these physical store experiments and Jesse did that but they still seem committed to grocery at least the four star or what was that start.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:30]<\/small>\u00a0<span title=\"36:30 - 36:32\" data-start=\"00:36:30.397\" data-end=\"00:36:31.556\" data-spk=\"0\" data-label=\"Jason\">Yeah five star.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:31]<\/small>\u00a0<span title=\"36:31 - 36:35\" data-start=\"00:36:31.364\" data-end=\"00:36:34.831\" data-spk=\"1\" data-label=\"Scot\">Faster that is the closed all those right.<\/span><br \/><span title=\"36:36 - 36:49\" data-start=\"00:36:36.100\" data-end=\"00:36:49.463\" data-spk=\"1\" data-label=\"Scot\">And the trimming back the just walk out stores so it\u2019s interesting to see that there they they see something in grocery or it\u2019s just such a big tan they feel like they have to obviously they have Whole Foods but.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:50]<\/small>\u00a0<span title=\"36:50 - 37:00\" data-start=\"00:36:49.602\" data-end=\"00:36:59.631\" data-spk=\"0\" data-label=\"Jason\">Yeah I do think it\u2019s one of one of their big bets and it was interesting like in some of the narrative Andy kind of he threw something at the grocery teams under the bus.<\/span><br \/><span title=\"37:00 - 37:09\" data-start=\"00:36:59.799\" data-end=\"00:37:08.584\" data-spk=\"0\" data-label=\"Jason\">You know like a lot of his complaints about the Amazon Fresh stores is he\u2019s like we just weren\u2019t good grocery operators that like are.<\/span><br \/><span title=\"37:09 - 37:16\" data-start=\"00:37:08.759\" data-end=\"00:37:16.384\" data-spk=\"0\" data-label=\"Jason\">Our inputs as he called it just weren\u2019t good like the the inventory turns the,\u00a0<\/span><span title=\"37:16 - 37:25\" data-start=\"00:37:16.493\" data-end=\"00:37:24.670\" data-spk=\"0\" data-label=\"Jason\">you know the inventory waste the labor cost that you know all those things weren\u2019t where they needed to be to be a competitive grocery store\u00a0<\/span><span title=\"37:25 - 37:32\" data-start=\"00:37:24.557\" data-end=\"00:37:32.140\" data-spk=\"0\" data-label=\"Jason\">and there\u2019s I\u2019m sure a lot of traditional grocers that were listening to this call going amen Andy we told you groceries are really brutal,\u00a0<\/span><span title=\"37:32 - 37:38\" data-start=\"00:37:32.212\" data-end=\"00:37:37.500\" data-spk=\"0\" data-label=\"Jason\">difficult Cutthroat business and you won\u2019t find it as easy as some of the other businesses you\u2019ve dominated so,\u00a0<\/span><span title=\"37:38 - 37:43\" data-start=\"00:37:37.620\" data-end=\"00:37:43.413\" data-spk=\"0\" data-label=\"Jason\">I still want to bet against Amazon I still think they\u2019re ultimately going to be a big player in grocery but.<\/span><\/p>\n<p><small>[37:53]<\/small>\u00a0<span title=\"37:53 - 38:07\" data-start=\"00:37:52.877\" data-end=\"00:38:07.419\" data-spk=\"0\" data-label=\"Jason\">And then one other to me really interesting tidbit is Healthcare that Amazon announced last week a new National Healthcare offering which is telemedicine.<\/span><br \/><span title=\"38:08 - 38:12\" data-start=\"00:38:07.624\" data-end=\"00:38:11.601\" data-spk=\"0\" data-label=\"Jason\">Um service and that\u2019s attached to Amazon Pharmacy.<\/span><br \/><span title=\"38:12 - 38:23\" data-start=\"00:38:11.788\" data-end=\"00:38:22.994\" data-spk=\"0\" data-label=\"Jason\">Um so this used to be an in-house experiment that they use to provide health benefits to a bunch of Amazon employees but and then they started offering it to.<\/span><br \/><span title=\"38:23 - 38:28\" data-start=\"00:38:23.145\" data-end=\"00:38:28.186\" data-spk=\"0\" data-label=\"Jason\">You know a few other employers that they had Healthcare agreements with,\u00a0<\/span><span title=\"38:28 - 38:41\" data-start=\"00:38:28.307\" data-end=\"00:38:40.799\" data-spk=\"0\" data-label=\"Jason\">but now they\u2019ve made it a national authoring that\u2019s available to everyone so you know if you if you need some prescription or you need some some medical advice and you don\u2019t want to go in and see a doctor you can\u2019t get an appointment.<\/span><br \/><span title=\"38:41 - 38:48\" data-start=\"00:38:40.968\" data-end=\"00:38:48.269\" data-spk=\"0\" data-label=\"Jason\">You can you do now use this Amazon Health Service to get a fast and easy.<\/span><br \/><span title=\"38:48 - 38:54\" data-start=\"00:38:48.485\" data-end=\"00:38:53.623\" data-spk=\"0\" data-label=\"Jason\">Um Health Care visit so you know we know Amazon has been kind of.<\/span><br \/><span title=\"38:54 - 39:01\" data-start=\"00:38:53.803\" data-end=\"00:39:00.785\" data-spk=\"0\" data-label=\"Jason\">Kicking the tires on the healthcare industry and they\u2019ve had a couple initiatives they had some Partnerships that they walked away from,\u00a0<\/span><span title=\"39:01 - 39:08\" data-start=\"00:39:00.924\" data-end=\"00:39:07.576\" data-spk=\"0\" data-label=\"Jason\">but there\u2019s another one where it seems like they haven\u2019t given up on the space and they\u2019re still you know rolling out and trying new things.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[39:08]<\/small>\u00a0<span title=\"39:08 - 39:17\" data-start=\"00:39:07.648\" data-end=\"00:39:16.619\" data-spk=\"1\" data-label=\"Scot\">Yeah and I hope they nail this because my my experience with the physical drugstores always terrible.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[39:17]<\/small>\u00a0<span title=\"39:17 - 39:23\" data-start=\"00:39:17.064\" data-end=\"00:39:22.773\" data-spk=\"0\" data-label=\"Jason\">Yeah I am not bullish on physical drug stores so again.<\/span><br \/><span title=\"39:23 - 39:29\" data-start=\"00:39:23.146\" data-end=\"00:39:28.806\" data-spk=\"0\" data-label=\"Jason\">You you know oil listeners now know what they should do for the investment there but like.<\/span><br \/><span title=\"39:30 - 39:39\" data-start=\"00:39:30.284\" data-end=\"00:39:38.847\" data-spk=\"0\" data-label=\"Jason\">You know the drug business used to be a retail business you walked into a pharmacy and you got all your prescriptions today the insurance companies mostly try to force you to use mail order.<\/span><br \/><span title=\"39:39 - 39:42\" data-start=\"00:39:39.460\" data-end=\"00:39:42.194\" data-spk=\"0\" data-label=\"Jason\">Pharmacy said the main reason people had to go to.<\/span><br \/><span title=\"39:42 - 39:50\" data-start=\"00:39:42.345\" data-end=\"00:39:49.615\" data-spk=\"0\" data-label=\"Jason\">Pharmacies has kind of gone away and as a retailer if you don\u2019t have to go there to get a farm prescription filled.<\/span><br \/><span title=\"39:50 - 39:54\" data-start=\"00:39:49.850\" data-end=\"00:39:53.647\" data-spk=\"0\" data-label=\"Jason\">The retail drug stores are awful retailers like they,\u00a0<\/span><span title=\"39:54 - 40:04\" data-start=\"00:39:53.714\" data-end=\"00:40:03.670\" data-spk=\"0\" data-label=\"Jason\">you know they don\u2019t have a good assortment they don\u2019t have a good prize they\u2019re they\u2019re deficient in digital in and if you watch all the moves they\u2019re making,\u00a0<\/span><span title=\"40:04 - 40:12\" data-start=\"00:40:03.725\" data-end=\"00:40:12.113\" data-spk=\"0\" data-label=\"Jason\">the thing that every retail drugstore is trying to do more than anything else is get out of retail and become a Healthcare company and own an insurance.<\/span><br \/><span title=\"40:13 - 40:19\" data-start=\"00:40:12.660\" data-end=\"00:40:19.180\" data-spk=\"0\" data-label=\"Jason\">So you know a lot of the CEOs of these companies now come from the insurance sides of the business and it it just doesn\u2019t seem like.<\/span><br \/><span title=\"40:20 - 40:28\" data-start=\"00:40:19.859\" data-end=\"00:40:27.779\" data-spk=\"0\" data-label=\"Jason\">The long-term future of us retail is to have you know multiple big National drug stores because the model is kind of waning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:28]<\/small>\u00a0<span title=\"40:28 - 40:36\" data-start=\"00:40:28.344\" data-end=\"00:40:36.095\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll I\u2019ll shut a small tear when they all go out of business and I can get things more efficient.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:36]<\/small>\u00a0<span title=\"40:36 - 40:50\" data-start=\"00:40:35.807\" data-end=\"00:40:49.976\" data-spk=\"0\" data-label=\"Jason\">Yeah I think at least one is going to have to survive because there are a lot of impromptu emergency get it right now kind of kind of needs but you know maybe down the road we\u2019ll do a grocery in Pharmacy Deep dive.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:50]<\/small>\u00a0<span title=\"40:50 - 40:55\" data-start=\"00:40:49.923\" data-end=\"00:40:55.270\" data-spk=\"1\" data-label=\"Scot\">Or Amazon will have things so close to you can get it in 15 minutes so you won\u2019t miss it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:55]<\/small>\u00a0<span title=\"40:55 - 41:01\" data-start=\"00:40:55.024\" data-end=\"00:41:01.129\" data-spk=\"0\" data-label=\"Jason\">Yeah you know one thing I will say like I thought you were going to say I won\u2019t feel bad if Amazon sells this because Healthcare in America.<\/span><br \/><span title=\"41:02 - 41:14\" data-start=\"00:41:01.526\" data-end=\"00:41:13.652\" data-spk=\"0\" data-label=\"Jason\">Royally screwed and a lot of people you know don\u2019t have in can\u2019t afford access to it so certainly it would be good if they fix that I will say Amazon rule that a service similar to a Walmart service which is really beneficial,\u00a0<\/span><span title=\"41:14 - 41:25\" data-start=\"00:41:13.731\" data-end=\"00:41:25.027\" data-spk=\"0\" data-label=\"Jason\">they\u2019re now offering generic versions of most chronic prescriptions for a flat five dollar fee and so one thing that has approved a lot in the United States in the last two years.<\/span><br \/><span title=\"41:25 - 41:33\" data-start=\"00:41:25.250\" data-end=\"00:41:33.073\" data-spk=\"0\" data-label=\"Jason\">Between Walmart and Amazon and actually like a big startup that Mark Cuban is running is a lot of these.<\/span><br \/><span title=\"41:33 - 41:40\" data-start=\"00:41:33.302\" data-end=\"00:41:39.761\" data-spk=\"0\" data-label=\"Jason\">You know prescriptions that were Out Of Reach for a lot of low-income people are becoming more affordable which is certainly a good thing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:40]<\/small>\u00a0<span title=\"41:40 - 41:44\" data-start=\"00:41:39.528\" data-end=\"00:41:44.142\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll take care of them but I\u2019d need my experience you better too.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:44]<\/small>\u00a0<span title=\"41:44 - 41:47\" data-start=\"00:41:44.191\" data-end=\"00:41:47.351\" data-spk=\"0\" data-label=\"Jason\">See how I found a way to end the show on a happy note.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:47]<\/small>\u00a0<span title=\"41:47 - 41:50\" data-start=\"00:41:47.093\" data-end=\"00:41:49.610\" data-spk=\"1\" data-label=\"Scot\">Yeah World Peace.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:50]<\/small>\u00a0<span title=\"41:50 - 41:57\" data-start=\"00:41:49.671\" data-end=\"00:41:57.146\" data-spk=\"0\" data-label=\"Jason\">Yeah and that you know last week we had a slightly shorter show and listeners told this they loved getting a little bit less of us and so\u00a0<\/span><span title=\"41:57 - 42:06\" data-start=\"00:41:57.014\" data-end=\"00:42:06.027\" data-spk=\"0\" data-label=\"Jason\">miraculously we have done it again we brought in a voluminous Amazon earnings call in a pithy 41 minutes,\u00a0<\/span><span title=\"42:06 - 42:14\" data-start=\"00:42:06.094\" data-end=\"00:42:13.731\" data-spk=\"0\" data-label=\"Jason\">so if you\u2019d like to reward us for our brevity the best way to do that would be to jump on iTunes and give us that five-star review.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[42:14]<\/small>\u00a0<span title=\"42:14 - 42:21\" data-start=\"00:42:13.947\" data-end=\"00:42:20.659\" data-spk=\"1\" data-label=\"Scot\">Thanks everyone we hope you enjoyed this Amazon Q2 earnings results and until next time.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[42:21]<\/small>\u00a0<span title=\"42:21 - 42:23\" data-start=\"00:42:20.684\" data-end=\"00:42:23.051\" data-spk=\"0\" data-label=\"Jason\">Happy Commercing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 308 is breakdown of Amazon\u2019s Q2 2023 earnings. Subscribe: ????? Amazon reported a strong […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-10077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10077"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Subscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon reported a strong quarter across the board for Q2, soundly exceeding analyst expectations and retail industry averages. In this episode we break down the 1p and 3p retail performance, AWS, and the Ads. We go into depth around Amazon disruption reorganization (to a regional model), Amazon\u2019s newest efforts in grocery, and health care.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 308 of the Jason & Scot show was recorded on Thursday, August 4, 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapterT\" class=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.473\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show\u00a0<\/span><span title=\"0:25 - 0:40\" data-start=\"00:00:25.377\" data-end=\"00:00:39.564\" data-spk=\"0\" data-label=\"Jason\">this is episode a 308 being recorded on Thursday August 3rd 2023 that\u2019s a lot of Threes I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:40]<\/small>\u00a0<span title=\"0:40 - 0:51\" data-start=\"00:00:39.600\" data-end=\"00:00:51.498\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason and Scott showed listeners well Jason today is one of my four favorite days of the year it is Amazon earnings day.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:51]<\/small>\u00a0<span title=\"0:51 - 0:54\" data-start=\"00:00:51.342\" data-end=\"00:00:54.382\" data-spk=\"0\" data-label=\"Jason\">I was going to guess it\u2019s the 4th Halloween okay.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:54]<\/small>\u00a0<span title=\"0:54 - 1:05\" data-start=\"00:00:54.088\" data-end=\"00:01:05.367\" data-spk=\"1\" data-label=\"Scot\">Nope good guess and today was a real doozy so we have a lot to talk about and of course it wouldn\u2019t be a Jason and Scot show without.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:05]<\/small>\u00a0<span title=\"1:05 - 1:18\" data-start=\"00:01:05.175\" data-end=\"00:01:18.412\" data-spk=\"0\" data-label=\"Jason\">Amazon news your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:18]<\/small>\u00a0<span title=\"1:18 - 1:25\" data-start=\"00:01:18.112\" data-end=\"00:01:25.383\" data-spk=\"1\" data-label=\"Scot\">That\u2019s right sometimes I hear from listeners why do you guys spend so much time talking about Amazon well\u00a0<\/span><span title=\"1:25 - 1:31\" data-start=\"00:01:25.245\" data-end=\"00:01:30.995\" data-spk=\"1\" data-label=\"Scot\">my rationale is a it\u2019s one of my favorite subjects did be\u00a0<\/span><span title=\"1:31 - 1:45\" data-start=\"00:01:30.882\" data-end=\"00:01:44.858\" data-spk=\"1\" data-label=\"Scot\">not only is Amazon the biggest retailer but it represents over half of e-commerce and for our listeners I think their data is pretty much the standard compared to even anything like comscore or adobe,\u00a0<\/span><span title=\"1:45 - 1:48\" data-start=\"00:01:44.859\" data-end=\"00:01:47.977\" data-spk=\"1\" data-label=\"Scot\">just by definition of them having so much data\u00a0<\/span><span title=\"1:48 - 2:03\" data-start=\"00:01:47.857\" data-end=\"00:02:02.705\" data-spk=\"1\" data-label=\"Scot\">that it is the basically the best source for what\u2019s going on and then given our macro environment we\u2019re at the tail end of the last show you were talking about how it\u2019s setting up for kind of a bad holiday so\u00a0<\/span><span title=\"2:03 - 2:12\" data-start=\"00:02:02.562\" data-end=\"00:02:11.935\" data-spk=\"1\" data-label=\"Scot\">we\u2019re heading into this it\u2019s a critical quarter and for me Q to see what Amazon is done really sets us up for the back half of the year.<\/span><br \/><span title=\"2:12 - 2:14\" data-start=\"00:02:12.254\" data-end=\"00:02:13.564\" data-spk=\"1\" data-label=\"Scot\">And especially holiday.<\/span><br \/><span title=\"2:14 - 2:23\" data-start=\"00:02:13.738\" data-end=\"00:02:22.806\" data-spk=\"1\" data-label=\"Scot\">So kind of a canary in the coal mine and right now there\u2019s all this confusing data coming out about the consumer you see things that sentiment is down\u00a0<\/span><span title=\"2:23 - 2:33\" data-start=\"00:02:22.668\" data-end=\"00:02:32.576\" data-spk=\"1\" data-label=\"Scot\">travel to starting to tip over housing is slowing so there\u2019s some negative but yet credit card spend is going pretty well\u00a0<\/span><span title=\"2:32 - 2:38\" data-start=\"00:02:32.451\" data-end=\"00:02:37.564\" data-spk=\"1\" data-label=\"Scot\">and so this is probably the best read we\u2019re going to get on the consumer heading into holiday.<\/span><\/p>\n<p><small>[2:39]<\/small>\u00a0<span title=\"2:39 - 2:45\" data-start=\"00:02:38.538\" data-end=\"00:02:44.540\" data-spk=\"1\" data-label=\"Scot\">So I think of it as Scott foreshadowing the whole industry that\u2019s why we like to spend a lot of time on it,\u00a0<\/span><span title=\"2:45 - 2:51\" data-start=\"00:02:44.691\" data-end=\"00:02:51.000\" data-spk=\"1\" data-label=\"Scot\">so the other thing I\u2019ll point out is it\u2019s been kind of a rough period for Amazon the last,\u00a0<\/span><span title=\"2:51 - 3:01\" data-start=\"00:02:51.025\" data-end=\"00:03:00.819\" data-spk=\"1\" data-label=\"Scot\">probably 6\/4 a day that things have slowed down post covid they\u2019ve struggled they\u2019ve done some layoffs but having watched Amazon if we zoom zoom out\u00a0<\/span><span title=\"3:01 - 3:04\" data-start=\"00:03:00.753\" data-end=\"00:03:03.962\" data-spk=\"1\" data-label=\"Scot\">having followed them since 97\u00a0<\/span><span title=\"3:04 - 3:16\" data-start=\"00:03:03.944\" data-end=\"00:03:15.986\" data-spk=\"1\" data-label=\"Scot\">they\u2019re really good at reading the room and if the market and the externalities are saying you\u2019re free to invest they will invest like crazy and you know and by saying that I mean they\u2019ll focus on Revenue growth\u00a0<\/span><span title=\"3:16 - 3:25\" data-start=\"00:03:15.854\" data-end=\"00:03:24.861\" data-spk=\"1\" data-label=\"Scot\">implementing infrastructure but then when the macro turns \u2013 and they can move to harvest pretty quickly so,\u00a0<\/span><span title=\"3:25 - 3:39\" data-start=\"00:03:24.994\" data-end=\"00:03:38.598\" data-spk=\"1\" data-label=\"Scot\">a lot of that kind of goes as good as Wall Street so Wall Street will love them and give them a lot of rope and they\u2019ll invest invest invest and then while she starts to worry they\u2019re like oh my gosh this is scary your spending so much things are doing this and then\u00a0<\/span><span title=\"3:38 - 3:45\" data-start=\"00:03:38.466\" data-end=\"00:03:44.902\" data-spk=\"1\" data-label=\"Scot\">they will turn very quickly and can then get into Harvest mode and produce results\u00a0<\/span><span title=\"3:45 - 3:56\" data-start=\"00:03:44.818\" data-end=\"00:03:56.247\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a really a big theme for this quarter so that\u2019s part of the set of the other part of the setup is we have some eCommerce data coming into this what is that,\u00a0<\/span><span title=\"3:56 - 4:00\" data-start=\"00:03:56.343\" data-end=\"00:04:00.105\" data-spk=\"1\" data-label=\"Scot\">what are those tea leaves tell us before we jump into Amazon.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:00]<\/small>\u00a0<span title=\"4:00 - 4:09\" data-start=\"00:03:59.805\" data-end=\"00:04:09.347\" data-spk=\"0\" data-label=\"Jason\">Yeah so we have data from the US Department of Commerce through June and it is a really complicated story so that\u00a0<\/span><span title=\"4:09 - 4:22\" data-start=\"00:04:09.245\" data-end=\"00:04:21.948\" data-spk=\"0\" data-label=\"Jason\">the top line is a little bit of a worrisome sign so year-to-date January through June of this year retail sales are 1.9 percent higher than they were during that same period last year\u00a0<\/span><span title=\"4:22 - 4:23\" data-start=\"00:04:21.786\" data-end=\"00:04:23.426\" data-spk=\"0\" data-label=\"Jason\">so\u00a0<\/span><span title=\"4:23 - 4:32\" data-start=\"00:04:23.480\" data-end=\"00:04:31.953\" data-spk=\"0\" data-label=\"Jason\">time now to put that in perspective in the 10 years leading up to covid we average retail growth of 4% a year so so far this year\u00a0<\/span><span title=\"4:32 - 4:39\" data-start=\"00:04:31.791\" data-end=\"00:04:38.581\" data-spk=\"0\" data-label=\"Jason\">the growth is less than half of the industry average and then the last three years of growth the last 3 years of Cook\u00a0<\/span><span title=\"4:38 - 4:48\" data-start=\"00:04:38.461\" data-end=\"00:04:48.490\" data-spk=\"0\" data-label=\"Jason\">post covid were the biggest three years of retail growth in the history of retail so we had these three monster years and now for the first time we have a six month period That\u2019s,\u00a0<\/span><span title=\"4:49 - 4:53\" data-start=\"00:04:48.502\" data-end=\"00:04:53.002\" data-spk=\"0\" data-label=\"Jason\">well off the average and,\u00a0<\/span><span title=\"4:53 - 5:01\" data-start=\"00:04:53.045\" data-end=\"00:05:00.994\" data-spk=\"0\" data-label=\"Jason\">Q2 was worse than q1 now you know people always say well what about inflation in these numbers\u00a0<\/span><span title=\"5:01 - 5:09\" data-start=\"00:05:00.857\" data-end=\"00:05:08.764\" data-spk=\"0\" data-label=\"Jason\">if you adjust all these numbers back to 2019 dollars to sort of take inflation out of it,\u00a0<\/span><span title=\"5:09 - 5:15\" data-start=\"00:05:08.861\" data-end=\"00:05:14.659\" data-spk=\"0\" data-label=\"Jason\">retail sales this year are actually down 2.8 percent from last year so so.<\/span><\/p>\n<p><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:23\" data-start=\"00:05:14.792\" data-end=\"00:05:23.468\" data-spk=\"0\" data-label=\"Jason\">All of the Mir growth we have this year is really due to its unusually high inflation now big caveat there,\u00a0<\/span><span title=\"5:24 - 5:32\" data-start=\"00:05:23.565\" data-end=\"00:05:31.953\" data-spk=\"0\" data-label=\"Jason\">the information news is actually pretty solid in inflation in June is only up three percent year over year which.<\/span><\/p>\n<p><small>[5:32]<\/small>\u00a0<span title=\"5:32 - 5:39\" data-start=\"00:05:32.254\" data-end=\"00:05:38.942\" data-spk=\"0\" data-label=\"Jason\">You know before all this inflation stuff started the Fed was always trying to keep inflation between two point two and three percent so.<\/span><\/p>\n<p><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:47\" data-start=\"00:05:39.255\" data-end=\"00:05:47.481\" data-spk=\"0\" data-label=\"Jason\">Information down and three percent if it if it stays down there is pretty encouraging but from a retail standpoint,\u00a0<\/span><span title=\"5:48 - 5:51\" data-start=\"00:05:47.577\" data-end=\"00:05:50.828\" data-spk=\"0\" data-label=\"Jason\">you have this weird thing you have the macroeconomics getting better\u00a0<\/span><span title=\"5:51 - 5:59\" data-start=\"00:05:50.810\" data-end=\"00:05:59.282\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a lot more economists saying we\u2019re not going into a recession we somehow managed a soft Landing you\u2019ve got the inflation numbers coming way down\u00a0<\/span><span title=\"5:59 - 6:11\" data-start=\"00:05:59.241\" data-end=\"00:06:11.222\" data-spk=\"0\" data-label=\"Jason\">all the wages and employment numbers have continued to be robust so you\u2019re all these favorable macroeconomics and now the consumer has stopped spending and you hear every retail are talking about how,\u00a0<\/span><span title=\"6:11 - 6:19\" data-start=\"00:06:11.295\" data-end=\"00:06:19.287\" data-spk=\"0\" data-label=\"Jason\">consumers are trading down a cheaper Goods they\u2019re buying more needs and less wants and all of these sorts of things and so.<\/span><br \/><span title=\"6:20 - 6:25\" data-start=\"00:06:19.503\" data-end=\"00:06:24.815\" data-spk=\"0\" data-label=\"Jason\">If you if you kind of look at the retail industry average.<\/span><br \/><span title=\"6:26 - 6:35\" data-start=\"00:06:25.500\" data-end=\"00:06:34.784\" data-spk=\"0\" data-label=\"Jason\">There are two retailers that have hit consistently been outperforming the industry average and those two retailers are Walmart and Amazon which are the two,\u00a0<\/span><span title=\"6:35 - 6:38\" data-start=\"00:06:34.929\" data-end=\"00:06:37.771\" data-spk=\"0\" data-label=\"Jason\">largest retailers in the United States of America.<\/span><br \/><span title=\"6:38 - 6:50\" data-start=\"00:06:37.921\" data-end=\"00:06:50.107\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s some controversy over who\u2019s actually bigger but we\u2019ll leave that for another show if the bottom line is if the two biggest retailers in the market are both outperforming the industry average.<\/span><br \/><span title=\"6:50 - 6:54\" data-start=\"00:06:50.372\" data-end=\"00:06:53.995\" data-spk=\"0\" data-label=\"Jason\">That\u2019s a bad sign for the rest of the retailers.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:54]<\/small>\u00a0<span title=\"6:54 - 6:56\" data-start=\"00:06:53.719\" data-end=\"00:06:55.509\" data-spk=\"1\" data-label=\"Scot\">Someone\u2019s losing share.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:55]<\/small>\u00a0<span title=\"6:55 - 7:02\" data-start=\"00:06:55.209\" data-end=\"00:07:02.053\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and I would note we don\u2019t talk about it a ton on the show but then there\u2019s two Chinese companies that are.<\/span><br \/><span title=\"7:02 - 7:11\" data-start=\"00:07:02.258\" data-end=\"00:07:11.019\" data-spk=\"0\" data-label=\"Jason\">Dramatically grabbing share really quick so she and and and Tim ooh so you know outside of those four.<\/span><br \/><span title=\"7:11 - 7:16\" data-start=\"00:07:11.254\" data-end=\"00:07:15.742\" data-spk=\"0\" data-label=\"Jason\">It\u2019s not looking super up to Mystic for,\u00a0<\/span><span title=\"7:16 - 7:29\" data-start=\"00:07:15.820\" data-end=\"00:07:28.992\" data-spk=\"0\" data-label=\"Jason\">for retail so I was super curious to hear not only how Amazon did but what they\u2019re what guidance they gave for Q3 and what they were seeing in terms of consumer spending because we do have this weird paradox.<\/span><br \/><span title=\"7:29 - 7:31\" data-start=\"00:07:29.365\" data-end=\"00:07:31.191\" data-spk=\"0\" data-label=\"Jason\">Macroeconomics getting better,\u00a0<\/span><span title=\"7:31 - 7:41\" data-start=\"00:07:31.288\" data-end=\"00:07:40.680\" data-spk=\"0\" data-label=\"Jason\">but retail spending getting worse so that being said like what what did Amazon report Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:40]<\/small>\u00a0<span title=\"7:40 - 7:52\" data-start=\"00:07:40.380\" data-end=\"00:07:52.121\" data-spk=\"1\" data-label=\"Scot\">Well it\u2019s an interesting quarter because again for like the last six quarters are 18 months it\u2019s been kind of using Wall Street language Wall Street always comes in with expectations and\u00a0<\/span><span title=\"7:52 - 8:01\" data-start=\"00:07:52.031\" data-end=\"00:08:01.333\" data-spk=\"1\" data-label=\"Scot\">then you either meet those beat them or miss them and or sometimes I\u2019ll call it in line if you meet their expectations well this was this was\u00a0<\/span><span title=\"8:01 - 8:06\" data-start=\"00:08:01.213\" data-end=\"00:08:05.545\" data-spk=\"1\" data-label=\"Scot\">pretty much an unprecedented four-way beat\u00a0<\/span><span title=\"8:05 - 8:17\" data-start=\"00:08:05.353\" data-end=\"00:08:16.680\" data-spk=\"1\" data-label=\"Scot\">with a raise and that\u2019s that last part is what about next quarter so the current quarter is did you how did you do and then did you for future Revenue\u00a0<\/span><span title=\"8:17 - 8:21\" data-start=\"00:08:16.560\" data-end=\"00:08:21.415\" data-spk=\"1\" data-label=\"Scot\">expectations did you stay in line with those or did you raise them so this was kind of like\u00a0<\/span><span title=\"8:21 - 8:29\" data-start=\"00:08:21.271\" data-end=\"00:08:28.788\" data-spk=\"1\" data-label=\"Scot\">one of the best quarters you can have using all the Wall Street language and I say a four way beat so number one is earnings per share,\u00a0<\/span><span title=\"8:29 - 8:41\" data-start=\"00:08:28.801\" data-end=\"00:08:40.746\" data-spk=\"1\" data-label=\"Scot\">while she was expecting 35 cents and they handily beat that at 65 cents so that\u2019s the first one the second one is revenue revenue came in at 134 billion versus 131a clear beat.<\/span><\/p>\n<p><small>[8:41]<\/small>\u00a0<span title=\"8:41 - 8:48\" data-start=\"00:08:41.161\" data-end=\"00:08:48.047\" data-spk=\"1\" data-label=\"Scot\">AWS Revenue there was a lot of worry around this because Microsoft was really showing their\u00a0<\/span><span title=\"8:48 - 8:55\" data-start=\"00:08:47.994\" data-end=\"00:08:55.252\" data-spk=\"1\" data-label=\"Scot\">first of all Microsoft had to break out as your separately for the first time and it used to be all clumped in together in this kind of cloud bucket,\u00a0<\/span><span title=\"8:55 - 9:01\" data-start=\"00:08:55.373\" data-end=\"00:09:01.489\" data-spk=\"1\" data-label=\"Scot\">where they could kind of have office they\u2019re hiding what was going on with Azure so now that Microsoft had to call,\u00a0<\/span><span title=\"9:02 - 9:07\" data-start=\"00:09:01.622\" data-end=\"00:09:07.288\" data-spk=\"1\" data-label=\"Scot\">carve out Azure it has been slowing down very dramatically so everyone was very worried about that\u00a0<\/span><span title=\"9:07 - 9:12\" data-start=\"00:09:07.181\" data-end=\"00:09:11.735\" data-spk=\"1\" data-label=\"Scot\">a WS beat the expectation was 21.8 and they came in at 22.<\/span><br \/><span title=\"9:12 - 9:18\" data-start=\"00:09:11.916\" data-end=\"00:09:18.381\" data-spk=\"1\" data-label=\"Scot\">I will talk a little bit more about the growth things and some other color there third-party exceeded expectation\u00a0<\/span><span title=\"9:18 - 9:28\" data-start=\"00:09:18.243\" data-end=\"00:09:28.470\" data-spk=\"1\" data-label=\"Scot\">the only thing that was really kind of in line is online store Revenue but the margin improvements if you can\u2019t go back to that EPS were so dramatic that everyone was fine with Alan being I think it was like.<\/span><\/p>\n<p><small>[9:30]<\/small>\u00a0<span title=\"9:30 - 9:32\" data-start=\"00:09:29.564\" data-end=\"00:09:32.010\" data-spk=\"1\" data-label=\"Scot\">Point two percent miss or something it was like\u00a0<\/span><span title=\"9:32 - 9:42\" data-start=\"00:09:31.938\" data-end=\"00:09:41.918\" data-spk=\"1\" data-label=\"Scot\">basically in line so that was the only piece that didn\u2019t beat and everyone was fine with that because all these other things really swamped the outcome there and then\u00a0<\/span><span title=\"9:42 - 9:45\" data-start=\"00:09:41.895\" data-end=\"00:09:45.001\" data-spk=\"1\" data-label=\"Scot\">to cap that off the midpoint\u00a0<\/span><span title=\"9:45 - 9:57\" data-start=\"00:09:44.815\" data-end=\"00:09:57.356\" data-spk=\"1\" data-label=\"Scot\">we\u2019ll talk about it but this represents about 11% growth all in for this quarter and the next quarter they guide for growth for 11 to 13 so they\u2019re basically saying hey we beat your expectations this quarter\u00a0<\/span><span title=\"9:57 - 10:08\" data-start=\"00:09:57.230\" data-end=\"00:10:08.196\" data-spk=\"1\" data-label=\"Scot\">and things are accelerating into Q3 so and then they also on the bottom line that guided up for next quarter as well so that went really really well\u00a0<\/span><span title=\"10:08 - 10:10\" data-start=\"00:10:08.064\" data-end=\"00:10:09.831\" data-spk=\"1\" data-label=\"Scot\">um and\u00a0<\/span><span title=\"10:10 - 10:18\" data-start=\"00:10:09.711\" data-end=\"00:10:18.370\" data-spk=\"1\" data-label=\"Scot\">that was a pretty amazing so let\u2019s peel the onion and see what we can learn you want to take us through the retail business.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:18]<\/small>\u00a0<span title=\"10:18 - 10:22\" data-start=\"00:10:18.070\" data-end=\"00:10:22.065\" data-spk=\"0\" data-label=\"Jason\">Yeah for sure so the\u00a0<\/span><span title=\"10:22 - 10:33\" data-start=\"00:10:22.054\" data-end=\"00:10:33.482\" data-spk=\"0\" data-label=\"Jason\">the retail business globally grew 11% so that last year this in this quarter they grew nine percent so accelerated growth,\u00a0<\/span><span title=\"10:34 - 10:42\" data-start=\"00:10:33.597\" data-end=\"00:10:41.739\" data-spk=\"0\" data-label=\"Jason\">North America grew 11 per sent an international grew ten percent\u00a0<\/span><span title=\"10:42 - 10:53\" data-start=\"00:10:41.661\" data-end=\"00:10:52.874\" data-spk=\"0\" data-label=\"Jason\">International really struggle this time last year they actually had a 12% decline last year and so so in general pretty robust growth now,\u00a0<\/span><span title=\"10:53 - 11:02\" data-start=\"00:10:52.880\" data-end=\"00:11:02.212\" data-spk=\"0\" data-label=\"Jason\">these are the revenue numbers which returned mine everyone Amazons and Marketplace they don\u2019t report all of their sales as Revenue they only report,\u00a0<\/span><span title=\"11:02 - 11:08\" data-start=\"00:11:02.290\" data-end=\"00:11:08.395\" data-spk=\"0\" data-label=\"Jason\">one piece sales and then the fees they earn on 3-piece sales so it\u2019s not it\u2019s not a perfect.<\/span><\/p>\n<p><small>[11:09]<\/small>\u00a0<span title=\"11:09 - 11:16\" data-start=\"00:11:08.834\" data-end=\"00:11:16.201\" data-spk=\"0\" data-label=\"Jason\">Now match to to the sort of Industry retail data I said but it\u2019s a close approximation so,\u00a0<\/span><span title=\"11:16 - 11:28\" data-start=\"00:11:16.225\" data-end=\"00:11:27.774\" data-spk=\"0\" data-label=\"Jason\">on average retail grows four percent a quarter the last two quarters retails grown you know less than half of that and Amazon comes in at 10 or 11 percent growth.<\/span><br \/><span title=\"11:28 - 11:36\" data-start=\"00:11:27.937\" data-end=\"00:11:35.874\" data-spk=\"0\" data-label=\"Jason\">So that\u2019s you know a pretty healthy outperforming that the industry average is and,\u00a0<\/span><span title=\"11:36 - 11:42\" data-start=\"00:11:35.959\" data-end=\"00:11:41.962\" data-spk=\"0\" data-label=\"Jason\">you\u2019re essentially taking share from the rest of retail now often just a side note.<\/span><br \/><span title=\"11:42 - 11:48\" data-start=\"00:11:42.275\" data-end=\"00:11:48.001\" data-spk=\"0\" data-label=\"Jason\">Obviously the vast majority of Amazon sales are online traditionally online grows much faster than.<\/span><\/p>\n<p><small>[11:48]<\/small>\u00a0<span title=\"11:48 - 11:58\" data-start=\"00:11:48.380\" data-end=\"00:11:57.934\" data-spk=\"0\" data-label=\"Jason\">Brick and mortar so historically we would see ten to fifteen percent online sales but post pandemic that\u2019s actually slowed down quite a bit and so,\u00a0<\/span><span title=\"11:58 - 12:02\" data-start=\"00:11:58.012\" data-end=\"00:12:02.020\" data-spk=\"0\" data-label=\"Jason\">online sales this year are probably averaging around.<\/span><br \/><span title=\"12:02 - 12:10\" data-start=\"00:12:02.327\" data-end=\"00:12:10.331\" data-spk=\"0\" data-label=\"Jason\">Seven and a half our eight percent and so Amazon\u2019s growth not only did it beat brick-and-mortar it actually beat the industry average,\u00a0<\/span><span title=\"12:10 - 12:17\" data-start=\"00:12:10.445\" data-end=\"00:12:16.934\" data-spk=\"0\" data-label=\"Jason\">even for e-commerce so that that is very robust,\u00a0<\/span><span title=\"12:17 - 12:28\" data-start=\"00:12:16.959\" data-end=\"00:12:28.021\" data-spk=\"0\" data-label=\"Jason\">they spent a lot of time both in their their press release and also in their earnings call talking about their focus on efficiencies,\u00a0<\/span><span title=\"12:29 - 12:40\" data-start=\"00:12:29.211\" data-end=\"00:12:39.607\" data-spk=\"0\" data-label=\"Jason\">and you know the all the work and efficiencies reorganization of their supply chain you know changing of Labor models,\u00a0<\/span><span title=\"12:40 - 12:44\" data-start=\"00:12:39.685\" data-end=\"00:12:43.897\" data-spk=\"0\" data-label=\"Jason\">that those others efficiencies are starting to bear fruit because,\u00a0<\/span><span title=\"12:44 - 12:52\" data-start=\"00:12:43.976\" data-end=\"00:12:51.565\" data-spk=\"0\" data-label=\"Jason\">the profitability was significantly up for.<\/span><\/p>\n<p><small>[12:52]<\/small>\u00a0<span title=\"12:52 - 13:01\" data-start=\"00:12:51.950\" data-end=\"00:13:01.293\" data-spk=\"0\" data-label=\"Jason\">For the retail business for this segment so I want to say no for North America they ended up earning like 3.2 billion and earn income.<\/span><br \/><span title=\"13:02 - 13:09\" data-start=\"00:13:01.576\" data-end=\"00:13:09.334\" data-spk=\"0\" data-label=\"Jason\">So you know some quarters they don\u2019t learn any so 3.2 is a healthy number.<\/span><\/p>\n<p><small>[13:10]<\/small>\u00a0<span title=\"13:10 - 13:14\" data-start=\"00:13:10.446\" data-end=\"00:13:13.594\" data-spk=\"0\" data-label=\"Jason\">For their growth and for people that aren\u2019t following it.<\/span><br \/><span title=\"13:14 - 13:26\" data-start=\"00:13:13.775\" data-end=\"00:13:26.459\" data-spk=\"0\" data-label=\"Jason\">Part of these efficiencies is a super interesting story essentially what Amazon has decided and what they now seem to have successfully executed is that having a national Supply.<\/span><\/p>\n<p><small>[13:27]<\/small>\u00a0<span title=\"13:27 - 13:39\" data-start=\"00:13:26.784\" data-end=\"00:13:39.475\" data-spk=\"0\" data-label=\"Jason\">Chain and a national order fulfillment network is not the right way to structure themselves so in the old world they had one order fulfillment system that covered the whole nation you could really want some,\u00a0<\/span><span title=\"13:40 - 13:48\" data-start=\"00:13:39.548\" data-end=\"00:13:47.593\" data-spk=\"0\" data-label=\"Jason\">delicious Green Tea Oreos you know that are only in the warehouse in California and you order those and Amazon figures out had a,\u00a0<\/span><span title=\"13:48 - 13:51\" data-start=\"00:13:47.702\" data-end=\"00:13:51.289\" data-spk=\"0\" data-label=\"Jason\">get those Oreos to you in 2 days from the warehouse in California,\u00a0<\/span><span title=\"13:51 - 14:01\" data-start=\"00:13:51.361\" data-end=\"00:14:00.591\" data-spk=\"0\" data-label=\"Jason\">and increasingly what Amazon said is you know customers really want speed we have to get faster in most cases where promising next day or same day to day is.<\/span><br \/><span title=\"14:01 - 14:08\" data-start=\"00:14:00.760\" data-end=\"00:14:07.585\" data-spk=\"0\" data-label=\"Jason\">Is you know a promise from 10 years ago and in order to do that efficiency efficiently and save money,\u00a0<\/span><span title=\"14:08 - 14:17\" data-start=\"00:14:07.586\" data-end=\"00:14:17.416\" data-spk=\"0\" data-label=\"Jason\">we have to have those Green Tea Oreos really close to Scott to start things off and so we\u2019re going to drop a bomb on our own industry-leading fulfillment Network\u00a0<\/span><span title=\"14:17 - 14:27\" data-start=\"00:14:17.405\" data-end=\"00:14:26.941\" data-spk=\"0\" data-label=\"Jason\">and we\u2019re going to redesign it as a set of regional networks so that the vast majority of good Scott orders come from a much shorter distance and so one of the,\u00a0<\/span><span title=\"14:27 - 14:36\" data-start=\"00:14:26.989\" data-end=\"00:14:35.870\" data-spk=\"0\" data-label=\"Jason\">the impressive results of that effort today is this quarter Amazon said that like despite all this growth and increasing order volumes\u00a0<\/span><span title=\"14:36 - 14:42\" data-start=\"00:14:35.817\" data-end=\"00:14:42.186\" data-spk=\"0\" data-label=\"Jason\">that they actually drove 20% less miles than they did this quarter last year.<\/span><\/p>\n<p><small>[14:42]<\/small>\u00a0<span title=\"14:42 - 14:46\" data-start=\"00:14:42.493\" data-end=\"00:14:45.989\" data-spk=\"0\" data-label=\"Jason\">So they\u2019re very successfully getting the goods,\u00a0<\/span><span title=\"14:46 - 14:56\" data-start=\"00:14:46.116\" data-end=\"00:14:56.019\" data-spk=\"0\" data-label=\"Jason\">closer to the consumer and to put you in put it in perspective how many Goods that is they announced that they now have over 300 million,\u00a0<\/span><span title=\"14:56 - 15:06\" data-start=\"00:14:56.085\" data-end=\"00:15:05.645\" data-spk=\"0\" data-label=\"Jason\">items that are eligible for Amazon Prime and over fifty percent of those items get delivered same day or next day.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:07]<\/small>\u00a0<span title=\"15:07 - 15:16\" data-start=\"00:15:07.130\" data-end=\"00:15:16.089\" data-spk=\"1\" data-label=\"Scot\">Yeah I thought that part was pretty amazing and what they\u2019ve done is they\u2019ve split the country into eight regions they actually were pretty\u00a0<\/span><span title=\"15:16 - 15:25\" data-start=\"00:15:16.077\" data-end=\"00:15:25.373\" data-spk=\"1\" data-label=\"Scot\">and the call to get into some pretty interesting detail on this end and I thought that was interesting because I usually pretty pretty tight-lipped on this so then\u00a0<\/span><span title=\"15:25 - 15:34\" data-start=\"00:15:25.229\" data-end=\"00:15:34.362\" data-spk=\"1\" data-label=\"Scot\">so they\u2019ve taken their National optimization you talked about and they\u2019re almost running each region has its own country so they\u2019re doing more of the load balancing inside of there\u00a0<\/span><span title=\"15:34 - 15:49\" data-start=\"00:15:34.291\" data-end=\"00:15:49.133\" data-spk=\"1\" data-label=\"Scot\">so in addition to the 20 percent fewer miles there touching the packages 20% less and you now get 76 percent of the units are in the union are in the region and just a while ago it was 66.<\/span><\/p>\n<p><small>[15:50]<\/small>\u00a0<span title=\"15:50 - 16:06\" data-start=\"00:15:50.497\" data-end=\"00:16:05.507\" data-spk=\"1\" data-label=\"Scot\">And then what he\u2019s what he\u2019s basically saying is that\u2019s a big efficiency and then within there another efficiency is they\u2019re leveraging the same day where houses so things used to go from these really big distribution centers to the\u00a0<\/span><span title=\"16:05 - 16:12\" data-start=\"00:16:05.334\" data-end=\"00:16:12.292\" data-spk=\"1\" data-label=\"Scot\">smaller ones and now we\u2019re going to these much smaller ones and they can now inject things in there\u00a0<\/span><span title=\"16:12 - 16:18\" data-start=\"00:16:12.130\" data-end=\"00:16:17.832\" data-spk=\"1\" data-label=\"Scot\">and he said those are streamlined and they can get an item from the order coming in\u00a0<\/span><span title=\"16:18 - 16:32\" data-start=\"00:16:17.676\" data-end=\"00:16:31.875\" data-spk=\"1\" data-label=\"Scot\">to delivery in as little as 11 minutes and those are even closer to the consumer so that it\u2019s almost he didn\u2019t say this but I kind of envisioned as eight regions are split up into eight more regions almost with these tiny you know within points being some of these other ones\u00a0<\/span><span title=\"16:32 - 16:41\" data-start=\"00:16:31.804\" data-end=\"00:16:40.667\" data-spk=\"1\" data-label=\"Scot\">they basically said this is working so well we\u2019re going to double the number of these small last-mile fulfillment centers so\u00a0<\/span><span title=\"16:41 - 16:47\" data-start=\"00:16:40.583\" data-end=\"00:16:46.622\" data-spk=\"1\" data-label=\"Scot\">that was I don\u2019t think Wall Street heard that because that\u2019s you know whenever Amazon says double\u00a0<\/span><span title=\"16:47 - 16:55\" data-start=\"00:16:46.604\" data-end=\"00:16:55.449\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a big number because they have like 200 ish of the big fulfillment centers I don\u2019t know how many small ones are but Amazon doubling anything is Nan.<\/span><\/p>\n<p><small>[16:55]<\/small>\u00a0<span title=\"16:55 - 17:02\" data-start=\"00:16:55.461\" data-end=\"00:17:01.975\" data-spk=\"1\" data-label=\"Scot\">Trivial number of dollars they\u2019re going to invest you didn\u2019t say over what time period\u00a0<\/span><span title=\"17:02 - 17:11\" data-start=\"00:17:01.921\" data-end=\"00:17:10.688\" data-spk=\"1\" data-label=\"Scot\">you want your when ordering covid they said they were double and they went from like 120 fulfillment centers took to actually literally doubled those pretty quickly\u00a0<\/span><span title=\"17:11 - 17:17\" data-start=\"00:17:10.676\" data-end=\"00:17:16.841\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s going to be interesting to watch that build-out I haven\u2019t seen one of those I\u2019ve seen them\u00a0<\/span><span title=\"17:17 - 17:27\" data-start=\"00:17:16.751\" data-end=\"00:17:26.936\" data-spk=\"1\" data-label=\"Scot\">Beck\u2019s I haven\u2019t been in one of been on the back end of one to watch the flex drivers that that\u2019s kind of what they used to do for Flex drivers so be interesting to see how they scale that and I would like to go\u00a0<\/span><span title=\"17:27 - 17:38\" data-start=\"00:17:26.823\" data-end=\"00:17:38.288\" data-spk=\"1\" data-label=\"Scot\">got a visit one I don\u2019t I don\u2019t know if any of the dsps which spend a lot of time with dsps here at spiffy so I\u2019ve got to see this side of the world a lot more than I did in the software e-commerce world\u00a0<\/span><span title=\"17:38 - 17:48\" data-start=\"00:17:38.138\" data-end=\"00:17:47.686\" data-spk=\"1\" data-label=\"Scot\">and there at the big fulfillment centers at these delivery stations that are called bolted on the side haven\u2019t seen how they pick up from some of these but I\u2019m making it a mission.<\/span><br \/><span title=\"17:48 - 17:49\" data-start=\"00:17:47.866\" data-end=\"00:17:48.707\" data-spk=\"1\" data-label=\"Scot\">Learn more about this.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:48]<\/small>\u00a0<span title=\"17:48 - 17:52\" data-start=\"00:17:48.407\" data-end=\"00:17:52.427\" data-spk=\"0\" data-label=\"Jason\">Dsps are the third party delivery services that Amazon uses yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[17:52]<\/small>\u00a0<span title=\"17:52 - 17:57\" data-start=\"00:17:52.127\" data-end=\"00:17:57.444\" data-spk=\"1\" data-label=\"Scot\">Delivery service professionals yeah so that was interesting.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:57]<\/small>\u00a0<span title=\"17:57 - 17:58\" data-start=\"00:17:57.175\" data-end=\"00:17:57.811\" data-spk=\"0\" data-label=\"Jason\">And\u00a0<\/span><span title=\"17:58 - 18:16\" data-start=\"00:17:57.763\" data-end=\"00:18:16.445\" data-spk=\"0\" data-label=\"Jason\">a reminder for the big fulfillment centers Amazon actually offers tours you can sign up and get a tour I don\u2019t think they haven\u2019t seen them ever offer tours on any of the other formats but there are some bootleg videos out on the internet if you know where to look I\u2019ll see if I can find some for the show notes\u00a0<\/span><span title=\"18:16 - 18:25\" data-start=\"00:18:16.241\" data-end=\"00:18:24.828\" data-spk=\"0\" data-label=\"Jason\">that that show like like one of the general contractors that builds these facilities put some videos on their website of,\u00a0<\/span><span title=\"18:25 - 18:28\" data-start=\"00:18:24.852\" data-end=\"00:18:27.538\" data-spk=\"0\" data-label=\"Jason\">of the finished facilities before they open.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:28]<\/small>\u00a0<span title=\"18:28 - 18:37\" data-start=\"00:18:28.422\" data-end=\"00:18:36.720\" data-spk=\"1\" data-label=\"Scot\">Yep so that\u2019s kind of the retail business let\u2019s mix it up usually I cover third party but let\u2019s kick it over you to run through them.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:37]<\/small>\u00a0<span title=\"18:37 - 18:46\" data-start=\"00:18:36.660\" data-end=\"00:18:45.583\" data-spk=\"0\" data-label=\"Jason\">Yeah are you okay with me talking about marketplaces I feel like as a Hall of Fame member you you this is like when mess a wet the other guy take the penalty kick.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:45]<\/small>\u00a0<span title=\"18:45 - 18:52\" data-start=\"00:18:45.289\" data-end=\"00:18:51.670\" data-spk=\"1\" data-label=\"Scot\">I\u2019m an auto guy now I don\u2019t know what this what is a 3 P3 what are the three p\u2019s.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:51]<\/small>\u00a0<span title=\"18:51 - 18:57\" data-start=\"00:18:51.370\" data-end=\"00:18:56.778\" data-spk=\"0\" data-label=\"Jason\">Yeah so another milestone for Amazon\u2019s Marketplace.<\/span><br \/><span title=\"18:57 - 19:11\" data-start=\"00:18:57.319\" data-end=\"00:19:10.797\" data-spk=\"0\" data-label=\"Jason\">They hit a new high for the percentage of their total sales that came from third parties so the mix is now 60% third parties 40% first party so that that\u2019s continuing along long-standing trend.<\/span><br \/><span title=\"19:11 - 19:16\" data-start=\"00:19:10.984\" data-end=\"00:19:15.773\" data-spk=\"0\" data-label=\"Jason\">The third party is continuing to grow and being the most important part of the.<\/span><br \/><span title=\"19:16 - 19:25\" data-start=\"00:19:16.032\" data-end=\"00:19:24.528\" data-spk=\"0\" data-label=\"Jason\">The assortment makes at Amazon I don\u2019t have the number in front of me but my memory is that the.<\/span><br \/><span title=\"19:25 - 19:34\" data-start=\"00:19:24.709\" data-end=\"00:19:34.257\" data-spk=\"0\" data-label=\"Jason\">The growth in 3p Services was actually faster than the retail growth as well so sort of implies that the volume went up but also Amazons.<\/span><br \/><span title=\"19:35 - 19:44\" data-start=\"00:19:34.756\" data-end=\"00:19:44.105\" data-spk=\"0\" data-label=\"Jason\">Doing even better at collecting more fees from all those three p providers so that the marketplace continues to be robust and important.<\/span><br \/><span title=\"19:44 - 19:54\" data-start=\"00:19:44.394\" data-end=\"00:19:54.303\" data-spk=\"0\" data-label=\"Jason\">You know one that always gets a lot of the energy on these earnings calls is a WS and there\u2019s kind of an interesting story going going on so so first of all,\u00a0<\/span><span title=\"19:54 - 20:03\" data-start=\"00:19:54.430\" data-end=\"00:20:02.577\" data-spk=\"0\" data-label=\"Jason\">the the Wall Street expectation was for AWS to grow eight percent this quarter and they announced that a WS grew 12% so.<\/span><br \/><span title=\"20:03 - 20:05\" data-start=\"00:20:02.830\" data-end=\"00:20:04.999\" data-spk=\"0\" data-label=\"Jason\">Massive beat from that perspective.<\/span><br \/><span title=\"20:05 - 20:16\" data-start=\"00:20:05.264\" data-end=\"00:20:16.152\" data-spk=\"0\" data-label=\"Jason\">Um and so then you go well is 12% good growth well a year ago they were growing at like 33 percent so twelve percent doesn\u2019t sound all that impressive compared to 33 percent.<\/span><br \/><span title=\"20:16 - 20:19\" data-start=\"00:20:16.435\" data-end=\"00:20:19.084\" data-spk=\"0\" data-label=\"Jason\">But what you have to remember is.<\/span><\/p>\n<p><small>[20:20]<\/small>\u00a0<span title=\"20:20 - 20:27\" data-start=\"00:20:19.608\" data-end=\"00:20:26.848\" data-spk=\"0\" data-label=\"Jason\">The rate of growth has been significantly slowing down quarter after quarter and last quarter q1.<\/span><\/p>\n<p><small>[20:27]<\/small>\u00a0<span title=\"20:27 - 20:33\" data-start=\"00:20:27.311\" data-end=\"00:20:32.755\" data-spk=\"0\" data-label=\"Jason\">That growth was 16 percent and when they announced that growth was 16%,\u00a0<\/span><span title=\"20:33 - 20:45\" data-start=\"00:20:32.882\" data-end=\"00:20:44.839\" data-spk=\"0\" data-label=\"Jason\">they really put dosed a bunch of cold water on investors because they said and we already have a month of data since the end of that quarter and it\u2019s slowed down more since then so I think that really is what spooked.<\/span><br \/><span title=\"20:45 - 21:00\" data-start=\"00:20:45.146\" data-end=\"00:21:00.108\" data-spk=\"0\" data-label=\"Jason\">The the investor community and that\u2019s where that sort of 8% expectation came from so 12 percent growth is kind of an indication that the growth rate although you know swelling down is stabilizing.<\/span><br \/><span title=\"21:00 - 21:08\" data-start=\"00:21:00.325\" data-end=\"00:21:08.166\" data-spk=\"0\" data-label=\"Jason\">Um and I think they\u2019re they don\u2019t give guidance on these individual segments but they.<\/span><br \/><span title=\"21:08 - 21:16\" data-start=\"00:21:08.473\" data-end=\"00:21:16.231\" data-spk=\"0\" data-label=\"Jason\">Made a nod to the fact that we\u2019re probably not going to see the growth rate slowed down dramatically from this,\u00a0<\/span><span title=\"21:16 - 21:19\" data-start=\"00:21:16.327\" data-end=\"00:21:19.421\" data-spk=\"0\" data-label=\"Jason\">they do pay a lot of lip service to the fact that,\u00a0<\/span><span title=\"21:20 - 21:28\" data-start=\"00:21:19.536\" data-end=\"00:21:28.333\" data-spk=\"0\" data-label=\"Jason\">it\u2019s a very big number and you can\u2019t grow in double digits anymore by just getting organic growth that like in order to,\u00a0<\/span><span title=\"21:28 - 21:36\" data-start=\"00:21:28.411\" data-end=\"00:21:35.922\" data-spk=\"0\" data-label=\"Jason\">continue to grow double digits you need to acquire a lot of net new customers and you need to acquire a lot of net new workloads,\u00a0<\/span><span title=\"21:36 - 21:46\" data-start=\"00:21:36.049\" data-end=\"00:21:45.891\" data-spk=\"0\" data-label=\"Jason\">but the good news is you know they have a very robust narrative about why there are a lot of customers and additional workloads to acquire and spoiler alert.<\/span><br \/><span title=\"21:46 - 21:54\" data-start=\"00:21:46.156\" data-end=\"00:21:53.901\" data-spk=\"0\" data-label=\"Jason\">You know a huge amount of them are related to generative Ai and a large language models where.<\/span><\/p>\n<p><small>[21:54]<\/small>\u00a0<span title=\"21:54 - 22:06\" data-start=\"00:21:54.292\" data-end=\"00:22:05.559\" data-spk=\"0\" data-label=\"Jason\">Amazon is investing a lot in things a lot of the future is going to be in these these three hosted layers of AI services that companies use to build AI Solutions on top.<\/span><\/p>\n<p><small>[22:06]<\/small>\u00a0<span title=\"22:06 - 22:15\" data-start=\"00:22:06.293\" data-end=\"00:22:15.336\" data-spk=\"0\" data-label=\"Jason\">So so you know I think their sales focus is going to be is less about getting more money from existing customers and more about getting.<\/span><br \/><span title=\"22:16 - 22:20\" data-start=\"00:22:15.541\" data-end=\"00:22:19.873\" data-spk=\"0\" data-label=\"Jason\">New customers and new workloads on a go-forward basis for a WS,\u00a0<\/span><span title=\"22:20 - 22:27\" data-start=\"00:22:19.987\" data-end=\"00:22:27.492\" data-spk=\"0\" data-label=\"Jason\">um I do want to say you add up the numbers for AWS and it\u2019s 88 billion dollar a year business that\u2019s the Run rate right now.<\/span><br \/><span title=\"22:28 - 22:37\" data-start=\"00:22:27.649\" data-end=\"00:22:37.004\" data-spk=\"0\" data-label=\"Jason\">And they make about 25 percent gross margin on that business so that that 88 billion dollar business is spinning off 21 billion dollars a year in profit.<\/span><br \/><span title=\"22:37 - 22:51\" data-start=\"00:22:37.233\" data-end=\"00:22:50.909\" data-spk=\"0\" data-label=\"Jason\">And everyone always talks about how AWS is by far the most profitable business at Amazon so keep that 21 billion dollar number in the back of your head because the next segment that Amazon talked about is ads,\u00a0<\/span><span title=\"22:51 - 22:58\" data-start=\"00:22:51.036\" data-end=\"00:22:58.367\" data-spk=\"0\" data-label=\"Jason\">and while AWS is growing at 12% they announced that the ad business is growing at 22 percent.<\/span><br \/><span title=\"22:59 - 23:03\" data-start=\"00:22:58.535\" data-end=\"00:23:03.036\" data-spk=\"0\" data-label=\"Jason\">Um so that puts,\u00a0<\/span><span title=\"23:03 - 23:10\" data-start=\"00:23:03.144\" data-end=\"00:23:10.235\" data-spk=\"0\" data-label=\"Jason\">the the ad business at like a 41 42 billion dollar run rate.<\/span><br \/><span title=\"23:10 - 23:16\" data-start=\"00:23:10.421\" data-end=\"00:23:16.298\" data-spk=\"0\" data-label=\"Jason\">And that the speculation is that the ad business is about a 75% gross margin.<\/span><br \/><span title=\"23:16 - 23:25\" data-start=\"00:23:16.497\" data-end=\"00:23:24.909\" data-spk=\"0\" data-label=\"Jason\">Business and so if they\u2019re at a 41 billion dollar run rate that means they\u2019re spinning off 30 billion dollars in profit.<\/span><\/p>\n<p><small>[23:25]<\/small>\u00a0<span title=\"23:25 - 23:33\" data-start=\"00:23:25.276\" data-end=\"00:23:33.033\" data-spk=\"0\" data-label=\"Jason\">For the ads business so Thirty 1 billion dollars in earning come from ads versus 22 billion dollars in.<\/span><br \/><span title=\"23:33 - 23:37\" data-start=\"00:23:33.250\" data-end=\"00:23:36.837\" data-spk=\"0\" data-label=\"Jason\">Or 21 billion dollars in profit from AWS so.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:37.144\" data-end=\"00:23:46.085\" data-spk=\"0\" data-label=\"Jason\">Quit talking about a WS being the most profitable business than Amazon ads is the most profitable business and is growing almost twice as fast.<\/span><br \/><span title=\"23:46 - 23:53\" data-start=\"00:23:46.326\" data-end=\"00:23:52.671\" data-spk=\"0\" data-label=\"Jason\">And there\u2019s another of my favorite facts about that ad business is.<\/span><br \/><span title=\"23:53 - 24:02\" data-start=\"00:23:52.839\" data-end=\"00:24:01.618\" data-spk=\"0\" data-label=\"Jason\">You know so again they\u2019re selling 44 billion dollars worth of ads you know where they get all the eyeballs that they they have to sell those ads.<\/span><\/p>\n<p><small>[24:03]<\/small>\u00a0<span title=\"24:03 - 24:06\" data-start=\"00:24:02.899\" data-end=\"00:24:05.560\" data-spk=\"0\" data-label=\"Jason\">Buy them from Google for 20 billion dollars.<\/span><br \/><span title=\"24:07 - 24:09\" data-start=\"00:24:06.750\" data-end=\"00:24:09.069\" data-spk=\"0\" data-label=\"Jason\">So so here\u2019s like an awesome business,\u00a0<\/span><span title=\"24:09 - 24:21\" data-start=\"00:24:09.070\" data-end=\"00:24:20.541\" data-spk=\"0\" data-label=\"Jason\">the Amazon is one of the largest advertisers in the world they spend twenty billion dollars I\u2019m sorry 22 billion dollars on ads to get people to come to all their services,\u00a0<\/span><span title=\"24:21 - 24:23\" data-start=\"00:24:20.577\" data-end=\"00:24:23.071\" data-spk=\"0\" data-label=\"Jason\">and consume them for profit right so,\u00a0<\/span><span title=\"24:23 - 24:38\" data-start=\"00:24:23.119\" data-end=\"00:24:37.823\" data-spk=\"0\" data-label=\"Jason\">so you run ads and you get people to buy stuff on Amazon you run ads and you get people to sign up for AWS you run ads and you get people to sign up for Amazon Prime Those ads do all this heavy lifting for all these different business units and then after you\u2019ve monetize that,\u00a0<\/span><span title=\"24:38 - 24:49\" data-start=\"00:24:37.925\" data-end=\"00:24:48.976\" data-spk=\"0\" data-label=\"Jason\">that a dollar you then sell that ad dollar back for a profit through this ad business so you want to talk about the network effect and how powerful it is\u00a0<\/span><span title=\"24:49 - 24:56\" data-start=\"00:24:48.778\" data-end=\"00:24:55.640\" data-spk=\"0\" data-label=\"Jason\">this to me is just an an awesome example of business engineering and you know I think.<\/span><br \/><span title=\"24:56 - 25:01\" data-start=\"00:24:56.139\" data-end=\"00:25:00.705\" data-spk=\"0\" data-label=\"Jason\">Often misunderstood aspect of the Amazon profit machine.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:01]<\/small>\u00a0<span title=\"25:01 - 25:12\" data-start=\"00:25:01.493\" data-end=\"00:25:11.768\" data-spk=\"1\" data-label=\"Scot\">Yes pretty amazing quarter for ads the they\u2019re just really Trout\u2019s snap used to be in the conversation and Twitter and it\u2019s really just Facebook Google and it was on it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:11]<\/small>\u00a0<span title=\"25:11 - 25:15\" data-start=\"00:25:11.468\" data-end=\"00:25:14.640\" data-spk=\"0\" data-label=\"Jason\">I mean Amazon\u2019s a much bigger ad business than Microsoft and Bing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:15]<\/small>\u00a0<span title=\"25:15 - 25:23\" data-start=\"00:25:15.043\" data-end=\"00:25:22.903\" data-spk=\"1\" data-label=\"Scot\">Absolutely another tidbit from the call we had talked about this and if you remember we had\u00a0<\/span><span title=\"25:23 - 25:35\" data-start=\"00:25:22.873\" data-end=\"00:25:35.426\" data-spk=\"1\" data-label=\"Scot\">we had a guest on from Guardian baseball and he was talking about this was right one by with prime came out and you were super skeptical that anyone would adopt.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:35]<\/small>\u00a0<span title=\"25:35 - 25:38\" data-start=\"00:25:35.126\" data-end=\"00:25:38.430\" data-spk=\"0\" data-label=\"Jason\">Yeah and what should you do anytime I\u2019m skeptical about a new idea.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:39]<\/small>\u00a0<span title=\"25:39 - 25:40\" data-start=\"00:25:39.020\" data-end=\"00:25:40.455\" data-spk=\"1\" data-label=\"Scot\">Go long on it go.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:40]<\/small>\u00a0<span title=\"25:40 - 25:41\" data-start=\"00:25:40.155\" data-end=\"00:25:41.297\" data-spk=\"0\" data-label=\"Jason\">Invest in it.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:41]<\/small>\u00a0<span title=\"25:41 - 25:43\" data-start=\"00:25:41.285\" data-end=\"00:25:43.490\" data-spk=\"1\" data-label=\"Scot\">Yeah.<\/span><br \/><span title=\"25:44 - 25:58\" data-start=\"00:25:43.665\" data-end=\"00:25:58.326\" data-spk=\"1\" data-label=\"Scot\">So first of all I saw a tweet earlier and this is from everyone\u2019s favorite follow bearded egg F ba and a couple other people had similar tweets but he actually had used the software that scrapes all these websites,\u00a0<\/span><span title=\"25:58 - 26:07\" data-start=\"00:25:58.417\" data-end=\"00:26:07.064\" data-spk=\"1\" data-label=\"Scot\">and he reported there\u2019s over 2,200 sites that now have by with Prime and then jassi\u2019s comments he said quote,\u00a0<\/span><span title=\"26:07 - 26:18\" data-start=\"00:26:07.136\" data-end=\"00:26:17.868\" data-spk=\"1\" data-label=\"Scot\">merchants in early trials use by both Prime saw their Shopper conversion increased 25% on average which makes a real difference in their business Merchants who participated in Prime Day activities,\u00a0<\/span><span title=\"26:18 - 26:22\" data-start=\"00:26:17.970\" data-end=\"00:26:21.708\" data-spk=\"1\" data-label=\"Scot\">experience 10x increase in Daily by with prime orders,\u00a0<\/span><span title=\"26:22 - 26:33\" data-start=\"00:26:21.846\" data-end=\"00:26:33.287\" data-spk=\"1\" data-label=\"Scot\">so there was a knock on effect that if you had by the Prime on your website then people found you and and rattled over and you saw a really nice kind of ripple effect from\u00a0<\/span><span title=\"26:33 - 26:44\" data-start=\"00:26:33.233\" data-end=\"00:26:43.869\" data-spk=\"1\" data-label=\"Scot\">the prime day efforts I thought that was an interesting tidbit so they\u2019re like like everything Amazon and I haven\u2019t followed the features but I\u2019m sure if you remember\u00a0<\/span><span title=\"26:44 - 26:52\" data-start=\"00:26:43.858\" data-end=\"00:26:52.246\" data-spk=\"1\" data-label=\"Scot\">Matt was complaining that you couldn\u2019t turn it on and off for certain excuse there was some feedback he had and maybe it didn\u2019t work with attributes\u00a0<\/span><span title=\"26:52 - 27:00\" data-start=\"00:26:52.114\" data-end=\"00:26:59.517\" data-spk=\"1\" data-label=\"Scot\">like a parent-child skews I\u2019m sure they fix all that or else it wouldn\u2019t be on this mini website so it sounds like that\u2019s really getting some some traction.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:00]<\/small>\u00a0<span title=\"27:00 - 27:03\" data-start=\"00:27:00.076\" data-end=\"00:27:02.810\" data-spk=\"0\" data-label=\"Jason\">Yeah I do I still think.<\/span><br \/><span title=\"27:03 - 27:16\" data-start=\"00:27:03.020\" data-end=\"00:27:15.711\" data-spk=\"0\" data-label=\"Jason\">To cite Lira but my double down on my earlier skepticism there still are some rough edges to the customer experience right so it still is a purse Q experience\u00a0<\/span><span title=\"27:16 - 27:23\" data-start=\"00:27:15.652\" data-end=\"00:27:23.024\" data-spk=\"0\" data-label=\"Jason\">which is a little weird like you know some products on the on the website you can get fast shipping for and some,\u00a0<\/span><span title=\"27:23 - 27:31\" data-start=\"00:27:23.055\" data-end=\"00:27:31.413\" data-spk=\"0\" data-label=\"Jason\">some products you can\u2019t and it\u2019s hard to know what they are until you put them in your cart so that\u2019s kind of the the old shop Runner.<\/span><\/p>\n<p><small>[27:32]<\/small>\u00a0<span title=\"27:32 - 27:40\" data-start=\"00:27:31.858\" data-end=\"00:27:39.970\" data-spk=\"0\" data-label=\"Jason\">For if you will but I do want to say two things both Amazon and Shopify are leaning into these,\u00a0<\/span><span title=\"27:40 - 27:51\" data-start=\"00:27:40.012\" data-end=\"00:27:50.516\" data-spk=\"0\" data-label=\"Jason\">conversion rates way better when you have by with Prime on your website or when you have shop pay on your website and you know you have to ask yourself what they\u2019re comparing that to write because,\u00a0<\/span><span title=\"27:51 - 28:04\" data-start=\"00:27:50.600\" data-end=\"00:28:03.700\" data-spk=\"0\" data-label=\"Jason\">it should surprise no one that conversion rate when the customer has stored payment information available is much higher than when they don\u2019t have stored payment information so the magic question is if you already had shop,\u00a0<\/span><span title=\"28:04 - 28:13\" data-start=\"00:28:03.838\" data-end=\"00:28:12.851\" data-spk=\"0\" data-label=\"Jason\">pay and PayPal on your site and then you added by with prime did by with prime perform 25% better than PayPal.<\/span><br \/><span title=\"28:13 - 28:21\" data-start=\"00:28:13.104\" data-end=\"00:28:20.970\" data-spk=\"0\" data-label=\"Jason\">Um or are they only saying by with prime prefer performs better than nothing because performing better than nothing isn\u2019t,\u00a0<\/span><span title=\"28:21 - 28:29\" data-start=\"00:28:21.078\" data-end=\"00:28:29.497\" data-spk=\"0\" data-label=\"Jason\">quite as impressive in my book and I do want to say well well they are making progress with by with Prime and the 2500,\u00a0<\/span><span title=\"28:30 - 28:39\" data-start=\"00:28:29.509\" data-end=\"00:28:38.648\" data-spk=\"0\" data-label=\"Jason\">Merchants is impressive just a reminder there\u2019s 2.5 million merchants on Amazon so the fact that 2,500 of them\u00a0<\/span><span title=\"28:39 - 28:42\" data-start=\"00:28:38.571\" data-end=\"00:28:42.170\" data-spk=\"0\" data-label=\"Jason\">are using it you know does not exactly mean it\u2019s caught fire.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:44]<\/small>\u00a0<span title=\"28:44 - 28:46\" data-start=\"00:28:43.877\" data-end=\"00:28:45.661\" data-spk=\"1\" data-label=\"Scot\">So still skeptical.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:46]<\/small>\u00a0<span title=\"28:46 - 28:51\" data-start=\"00:28:45.673\" data-end=\"00:28:51.490\" data-spk=\"0\" data-label=\"Jason\">Yes so again what should you do go double down on the go along.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:49]<\/small>\u00a0<span title=\"28:49 - 28:54\" data-start=\"00:28:49.495\" data-end=\"00:28:53.825\" data-spk=\"1\" data-label=\"Scot\">Short Amazon Jason you short Amazon I\u2019ll go alone.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:54]<\/small>\u00a0<span title=\"28:54 - 28:55\" data-start=\"00:28:53.575\" data-end=\"00:28:54.711\" data-spk=\"0\" data-label=\"Jason\">Yeah that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:55]<\/small>\u00a0<span title=\"28:55 - 28:59\" data-start=\"00:28:55.134\" data-end=\"00:28:58.538\" data-spk=\"1\" data-label=\"Scot\">Prime is not going to work thesis and I\u2019ll go on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:58]<\/small>\u00a0<span title=\"28:58 - 29:03\" data-start=\"00:28:58.238\" data-end=\"00:29:03.478\" data-spk=\"0\" data-label=\"Jason\">Yes I don\u2019t I don\u2019t think you\u2019re giving me helpful investment advice.<\/span><br \/><span title=\"29:06 - 29:15\" data-start=\"00:29:05.912\" data-end=\"00:29:14.967\" data-spk=\"0\" data-label=\"Jason\">So that was all the main stuff I saw in the earnings calls was there anything else you wanted to cover because I think there is a few other tidbits of Amazon news.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:15]<\/small>\u00a0<span title=\"29:15 - 29:22\" data-start=\"00:29:14.673\" data-end=\"00:29:21.737\" data-spk=\"1\" data-label=\"Scot\">I saw Grocery and I had a feeling that your ears were too perked up I I fell asleep during that part so I\u2019ll kick it over to you.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:21]<\/small>\u00a0<span title=\"29:21 - 29:23\" data-start=\"00:29:20.736\" data-end=\"00:29:22.941\" data-spk=\"0\" data-label=\"Jason\">Oh my god do you not eat.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:23]<\/small>\u00a0<span title=\"29:23 - 29:28\" data-start=\"00:29:23.172\" data-end=\"00:29:28.019\" data-spk=\"1\" data-label=\"Scot\">I do but groceries is everyone\u2019s least favorite chore.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:28]<\/small>\u00a0<span title=\"29:28 - 29:35\" data-start=\"00:29:27.719\" data-end=\"00:29:34.845\" data-spk=\"0\" data-label=\"Jason\">Scot doesn\u2019t want to say it but he has people that get his groceries for him that\u2019s what\u2019s going on here he hasn\u2019t been to a grocery store in like 10 years.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:35]<\/small>\u00a0<span title=\"29:35 - 29:37\" data-start=\"00:29:34.545\" data-end=\"00:29:37.417\" data-spk=\"1\" data-label=\"Scot\">Every every meal is from Chick-fil-A so I don\u2019t have to go through.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:37]<\/small>\u00a0<span title=\"29:37 - 29:47\" data-start=\"00:29:37.117\" data-end=\"00:29:46.899\" data-spk=\"0\" data-label=\"Jason\">That seems like it would be a pretty fun for a little while but I have a feeling that the there would wear off,\u00a0<\/span><span title=\"29:47 - 29:57\" data-start=\"00:29:47.014\" data-end=\"00:29:57.433\" data-spk=\"0\" data-label=\"Jason\">so yes Scott you are right I\u2019m super interested in grocery groceries 25 percent of all retail spending it\u2019s the biggest category of spending that Amazon hasn\u2019t won,\u00a0<\/span><span title=\"29:57 - 30:02\" data-start=\"00:29:57.476\" data-end=\"00:30:02.463\" data-spk=\"0\" data-label=\"Jason\">I think it was about 40 years ago that they acquired Whole Foods do I have that right was it 40 years ago.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:03]<\/small>\u00a0<span title=\"30:03 - 30:05\" data-start=\"00:30:03.004\" data-end=\"00:30:04.572\" data-spk=\"1\" data-label=\"Scot\">49<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:05]<\/small>\u00a0<span title=\"30:05 - 30:08\" data-start=\"00:30:04.609\" data-end=\"00:30:08.352\" data-spk=\"0\" data-label=\"Jason\">I\u2019m exaggerating I was over 10 years ago now though.<\/span><br \/><span title=\"30:09 - 30:23\" data-start=\"00:30:08.623\" data-end=\"00:30:22.545\" data-spk=\"0\" data-label=\"Jason\">That they bought at Whole Foods and hopefully just kind of flat since they acquired them it really hasn\u2019t you know turned in anything a reminder Whole Foods is very niche in the grocery space like Whole Foods doesn\u2019t sell Coke they don\u2019t sell Fritos,\u00a0<\/span><span title=\"30:23 - 30:32\" data-start=\"00:30:22.684\" data-end=\"00:30:31.781\" data-spk=\"0\" data-label=\"Jason\">um and they\u2019re only in a handful of big cities so there the the industry leader in organic produce but they\u2019re not a mainstream.<\/span><br \/><span title=\"30:32 - 30:42\" data-start=\"00:30:32.034\" data-end=\"00:30:41.954\" data-spk=\"0\" data-label=\"Jason\">And one of the things so Amazon made a bunch of announcements that they were retooling their grocery experience and changing some of their offerings.<\/span><br \/><span title=\"30:42 - 30:44\" data-start=\"00:30:42.129\" data-end=\"00:30:44.250\" data-spk=\"0\" data-label=\"Jason\">Two days before the earnings call.<\/span><br \/><span title=\"30:44 - 30:54\" data-start=\"00:30:44.461\" data-end=\"00:30:54.099\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll come back to what those announcements were but on the earnings call Andy answered some questions about Grocery and he kind of admitted something interesting,\u00a0<\/span><span title=\"30:54 - 30:59\" data-start=\"00:30:54.249\" data-end=\"00:30:59.152\" data-spk=\"0\" data-label=\"Jason\">Amazon is doing very well at what Amazon usually calls everyday essentials.<\/span><br \/><span title=\"31:00 - 31:12\" data-start=\"00:30:59.501\" data-end=\"00:31:12.036\" data-spk=\"0\" data-label=\"Jason\">And I think the Brian the CFO call that non-climate controlled Goods right so all these shelf-stable things that you tend to buy from a grocery store but you don\u2019t actually eat.<\/span><br \/><span title=\"31:12 - 31:21\" data-start=\"00:31:12.301\" data-end=\"00:31:20.941\" data-spk=\"0\" data-label=\"Jason\">Um Amazon\u2019s pretty good at selling and growing fast and they have a big chunk of that business they are not good at selling.<\/span><\/p>\n<p><small>[31:21]<\/small>\u00a0<span title=\"31:21 - 31:27\" data-start=\"00:31:21.495\" data-end=\"00:31:27.089\" data-spk=\"0\" data-label=\"Jason\">Perishables they\u2019re not good at Selling climate-controlled Stuff they\u2019re not good at selling fresh food online.<\/span><br \/><span title=\"31:27 - 31:32\" data-start=\"00:31:27.281\" data-end=\"00:31:32.034\" data-spk=\"0\" data-label=\"Jason\">Um and what Andy said in answer to one of the analysts questions was,\u00a0<\/span><span title=\"31:32 - 31:46\" data-start=\"00:31:32.137\" data-end=\"00:31:45.524\" data-spk=\"0\" data-label=\"Jason\">to really meaningfully capture sharing grocery you have to have a broad offering in all the areas of grocery not just the everyday essentials and we don\u2019t believe you can win.<\/span><br \/><span title=\"31:46 - 31:52\" data-start=\"00:31:45.717\" data-end=\"00:31:52.375\" data-spk=\"0\" data-label=\"Jason\">With a broad assortment of groceries without a national footprint of stores.<\/span><\/p>\n<p><small>[31:53]<\/small>\u00a0<span title=\"31:53 - 32:04\" data-start=\"00:31:52.634\" data-end=\"00:32:04.183\" data-spk=\"0\" data-label=\"Jason\">So you know he kind of conceded that the Fulfillment center model and the multi-tiered regional Warehouse model that Amazon is building out.<\/span><br \/><span title=\"32:04 - 32:13\" data-start=\"00:32:04.423\" data-end=\"00:32:13.346\" data-spk=\"0\" data-label=\"Jason\">Is not particularly well suited for the grocery mix and so he said so you know we need to figure out a grocery,\u00a0<\/span><span title=\"32:13 - 32:22\" data-start=\"00:32:13.407\" data-end=\"00:32:22.318\" data-spk=\"0\" data-label=\"Jason\">and we kind of concluded what we\u2019ve rolled out over the last few years at Amazon Fresh is not a winning grocery concept so we put we put a hold on growth,\u00a0<\/span><span title=\"32:22 - 32:31\" data-start=\"00:32:22.457\" data-end=\"00:32:30.707\" data-spk=\"0\" data-label=\"Jason\">we went back to the drawing board we invented a bunch of new experiences and now we\u2019re testing those new experiences to see if they are,\u00a0<\/span><span title=\"32:31 - 32:42\" data-start=\"00:32:30.767\" data-end=\"00:32:41.763\" data-spk=\"0\" data-label=\"Jason\">more appealing to Consumers so the First Market to get these new experiences is Chicago so they just remodeled the the Amazon Fresh stores here in Chicago I\u2019m going to go visit one soon.<\/span><br \/><span title=\"32:42 - 32:56\" data-start=\"00:32:41.962\" data-end=\"00:32:55.855\" data-spk=\"0\" data-label=\"Jason\">But they\u2019ve essentially they\u2019ve changed the assortment quite a bit they\u2019ve added more private label and they\u2019ve added more National brands for a grocery store Amazon Fresh doors were really kind of a limited assortment grocery store and so it sounds like.<\/span><\/p>\n<p><small>[32:56]<\/small>\u00a0<span title=\"32:56 - 32:59\" data-start=\"00:32:56.119\" data-end=\"00:32:59.292\" data-spk=\"0\" data-label=\"Jason\">They\u2019re moving they didn\u2019t say numbers but in my mind,\u00a0<\/span><span title=\"32:59 - 33:10\" data-start=\"00:32:59.442\" data-end=\"00:33:09.525\" data-spk=\"0\" data-label=\"Jason\">they were like a twelve thousand SQ grocer and Kroger is like a 20,000 SQ grocer so they\u2019re there it sounds like they\u2019re moving up to that 20,000 skus.<\/span><\/p>\n<p><small>[33:10]<\/small>\u00a0<span title=\"33:10 - 33:15\" data-start=\"00:33:10.115\" data-end=\"00:33:14.993\" data-spk=\"0\" data-label=\"Jason\">And they\u2019re testing a bunch of new amenities,\u00a0<\/span><span title=\"33:15 - 33:28\" data-start=\"00:33:15.090\" data-end=\"00:33:28.406\" data-spk=\"0\" data-label=\"Jason\">and one of the big problems you have in grocery especially when consumers are being really cost-conscious is consumers walk into a grocery store with a budget and they want to make sure they don\u2019t overspend that budget.<\/span><br \/><span title=\"33:29 - 33:35\" data-start=\"00:33:28.556\" data-end=\"00:33:34.841\" data-spk=\"0\" data-label=\"Jason\">And just walk out grocery stores you actually don\u2019t find out how much you spent until 15 minutes after you\u2019ve left the store.<\/span><\/p>\n<p><small>[33:35]<\/small>\u00a0<span title=\"33:35 - 33:40\" data-start=\"00:33:35.329\" data-end=\"00:33:40.400\" data-spk=\"0\" data-label=\"Jason\">Which is an awful experience if you\u2019re trying to make sure you stay under 100 dollars.<\/span><br \/><span title=\"33:41 - 33:52\" data-start=\"00:33:40.605\" data-end=\"00:33:52.316\" data-spk=\"0\" data-label=\"Jason\">And so one of the amenities they\u2019ve rolled out is on these Dash cards these digital cards that they let you use in the store they now have a real time running total of what\u2019s in your cart so for the first time you can see.<\/span><\/p>\n<p><small>[33:53]<\/small>\u00a0<span title=\"33:53 - 33:58\" data-start=\"00:33:52.707\" data-end=\"00:33:58.199\" data-spk=\"0\" data-label=\"Jason\">You know how much you spent so there\u2019s a bunch of experiences like that I\u2019ll get a better feel for what the new ones are.<\/span><br \/><span title=\"33:58 - 34:12\" data-start=\"00:33:58.397\" data-end=\"00:34:12.206\" data-spk=\"0\" data-label=\"Jason\">When I go visit but they\u2019re starting to Pilot new grocery Concepts and they\u2019re you know they\u2019ve kind of conceded that they need to scale one of these brick-and-mortar Concepts nationally before they can really be a.<\/span><br \/><span title=\"34:12 - 34:17\" data-start=\"00:34:12.435\" data-end=\"00:34:16.953\" data-spk=\"0\" data-label=\"Jason\">A meaningful winner in the digital grocery space.<\/span><br \/><span title=\"34:17 - 34:31\" data-start=\"00:34:17.104\" data-end=\"00:34:30.942\" data-spk=\"0\" data-label=\"Jason\">But they made a couple other big changes in grocery to one of the biggest complaints and one of the stupidest things about Amazon\u2019s grocery is before you shop for groceries in Amazon you need to get an org chart and understand how Amazon\u2019s organized because,\u00a0<\/span><span title=\"34:31 - 34:40\" data-start=\"00:34:31.069\" data-end=\"00:34:40.106\" data-spk=\"0\" data-label=\"Jason\">you have to decide in advance if you\u2019re shopping online at Whole Foods or Amazon Fresh and guess what most customers don\u2019t understand the distinction between those two things,\u00a0<\/span><span title=\"34:40 - 34:50\" data-start=\"00:34:40.233\" data-end=\"00:34:49.841\" data-spk=\"0\" data-label=\"Jason\">and so they had separate carts you actually have three cards on the Amazon website you have a general merchandise Encarta gross Amazon Fresh cart and a Whole Foods car,\u00a0<\/span><span title=\"34:50 - 34:56\" data-start=\"00:34:49.925\" data-end=\"00:34:56.433\" data-spk=\"0\" data-label=\"Jason\">and it can be really confusing because you just click add to cart on a bunch of stuff and then you go look at your cart and it\u2019s not there because it\u2019s in one of the other car.<\/span><br \/><span title=\"34:57 - 35:00\" data-start=\"00:34:56.770\" data-end=\"00:35:00.363\" data-spk=\"0\" data-label=\"Jason\">So they announced that they\u2019re moving to a universal cart.<\/span><br \/><span title=\"35:01 - 35:10\" data-start=\"00:35:00.561\" data-end=\"00:35:10.296\" data-spk=\"0\" data-label=\"Jason\">I haven\u2019t seen it yet so I can\u2019t speak to exactly what it looks like I have a few a name mean a universal grocery cart I don\u2019t think they\u2019re actually going to mix it in with general merchandise but.<\/span><\/p>\n<p><small>[35:11]<\/small>\u00a0<span title=\"35:11 - 35:19\" data-start=\"00:35:10.861\" data-end=\"00:35:18.900\" data-spk=\"0\" data-label=\"Jason\">Will be eager to see that and then the other announcement they made that is I\u2019m not I mean I just don\u2019t think it\u2019s as big a deal is,\u00a0<\/span><span title=\"35:19 - 35:32\" data-start=\"00:35:19.015\" data-end=\"00:35:31.736\" data-spk=\"0\" data-label=\"Jason\">um they have opened up grocery delivery from Amazon Fresh to non-prime members so so prior to this week you had to be a prompt Amazon prime number to order from from Amazon Fresh.<\/span><br \/><span title=\"35:32 - 35:39\" data-start=\"00:35:31.935\" data-end=\"00:35:38.923\" data-spk=\"0\" data-label=\"Jason\">And this is kind of interesting because this is a further erosion of Amazon Prime benefits you used to get free delivery,\u00a0<\/span><span title=\"35:39 - 35:45\" data-start=\"00:35:39.013\" data-end=\"00:35:45.473\" data-spk=\"0\" data-label=\"Jason\">um with Amazon Prime for groceries and about a year ago Amazon caved to try to get more profit,\u00a0<\/span><span title=\"35:46 - 35:57\" data-start=\"00:35:45.521\" data-end=\"00:35:56.818\" data-spk=\"0\" data-label=\"Jason\">and they added a delivery fee even if you\u2019re a Prime member but they said you can only get delivery of your Prime member now they\u2019re they\u2019re taking that benefit off the scale and I just point that out because.<\/span><br \/><span title=\"35:57 - 36:06\" data-start=\"00:35:57.059\" data-end=\"00:36:06.156\" data-spk=\"0\" data-label=\"Jason\">Amazon\u2019s ordinarily so good at adding new benefits to Prime is kind of rare to see them taking benefits away from Prime so I think that\u2019s interesting in the.<\/span><br \/><span title=\"36:06 - 36:13\" data-start=\"00:36:06.451\" data-end=\"00:36:13.144\" data-spk=\"0\" data-label=\"Jason\">The grocery space anything else that I missed or the jumped out at you about grocery Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:13]<\/small>\u00a0<span title=\"36:13 - 36:17\" data-start=\"00:36:13.475\" data-end=\"00:36:16.570\" data-spk=\"1\" data-label=\"Scot\">No I thought it was you know.<\/span><br \/><span title=\"36:17 - 36:31\" data-start=\"00:36:17.117\" data-end=\"00:36:30.697\" data-spk=\"1\" data-label=\"Scot\">A lot of people would expect him to throw in the towel because they\u2019ve closed some of these physical store experiments and Jesse did that but they still seem committed to grocery at least the four star or what was that start.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:30]<\/small>\u00a0<span title=\"36:30 - 36:32\" data-start=\"00:36:30.397\" data-end=\"00:36:31.556\" data-spk=\"0\" data-label=\"Jason\">Yeah five star.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:31]<\/small>\u00a0<span title=\"36:31 - 36:35\" data-start=\"00:36:31.364\" data-end=\"00:36:34.831\" data-spk=\"1\" data-label=\"Scot\">Faster that is the closed all those right.<\/span><br \/><span title=\"36:36 - 36:49\" data-start=\"00:36:36.100\" data-end=\"00:36:49.463\" data-spk=\"1\" data-label=\"Scot\">And the trimming back the just walk out stores so it\u2019s interesting to see that there they they see something in grocery or it\u2019s just such a big tan they feel like they have to obviously they have Whole Foods but.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:50]<\/small>\u00a0<span title=\"36:50 - 37:00\" data-start=\"00:36:49.602\" data-end=\"00:36:59.631\" data-spk=\"0\" data-label=\"Jason\">Yeah I do think it\u2019s one of one of their big bets and it was interesting like in some of the narrative Andy kind of he threw something at the grocery teams under the bus.<\/span><br \/><span title=\"37:00 - 37:09\" data-start=\"00:36:59.799\" data-end=\"00:37:08.584\" data-spk=\"0\" data-label=\"Jason\">You know like a lot of his complaints about the Amazon Fresh stores is he\u2019s like we just weren\u2019t good grocery operators that like are.<\/span><br \/><span title=\"37:09 - 37:16\" data-start=\"00:37:08.759\" data-end=\"00:37:16.384\" data-spk=\"0\" data-label=\"Jason\">Our inputs as he called it just weren\u2019t good like the the inventory turns the,\u00a0<\/span><span title=\"37:16 - 37:25\" data-start=\"00:37:16.493\" data-end=\"00:37:24.670\" data-spk=\"0\" data-label=\"Jason\">you know the inventory waste the labor cost that you know all those things weren\u2019t where they needed to be to be a competitive grocery store\u00a0<\/span><span title=\"37:25 - 37:32\" data-start=\"00:37:24.557\" data-end=\"00:37:32.140\" data-spk=\"0\" data-label=\"Jason\">and there\u2019s I\u2019m sure a lot of traditional grocers that were listening to this call going amen Andy we told you groceries are really brutal,\u00a0<\/span><span title=\"37:32 - 37:38\" data-start=\"00:37:32.212\" data-end=\"00:37:37.500\" data-spk=\"0\" data-label=\"Jason\">difficult Cutthroat business and you won\u2019t find it as easy as some of the other businesses you\u2019ve dominated so,\u00a0<\/span><span title=\"37:38 - 37:43\" data-start=\"00:37:37.620\" data-end=\"00:37:43.413\" data-spk=\"0\" data-label=\"Jason\">I still want to bet against Amazon I still think they\u2019re ultimately going to be a big player in grocery but.<\/span><\/p>\n<p><small>[37:53]<\/small>\u00a0<span title=\"37:53 - 38:07\" data-start=\"00:37:52.877\" data-end=\"00:38:07.419\" data-spk=\"0\" data-label=\"Jason\">And then one other to me really interesting tidbit is Healthcare that Amazon announced last week a new National Healthcare offering which is telemedicine.<\/span><br \/><span title=\"38:08 - 38:12\" data-start=\"00:38:07.624\" data-end=\"00:38:11.601\" data-spk=\"0\" data-label=\"Jason\">Um service and that\u2019s attached to Amazon Pharmacy.<\/span><br \/><span title=\"38:12 - 38:23\" data-start=\"00:38:11.788\" data-end=\"00:38:22.994\" data-spk=\"0\" data-label=\"Jason\">Um so this used to be an in-house experiment that they use to provide health benefits to a bunch of Amazon employees but and then they started offering it to.<\/span><br \/><span title=\"38:23 - 38:28\" data-start=\"00:38:23.145\" data-end=\"00:38:28.186\" data-spk=\"0\" data-label=\"Jason\">You know a few other employers that they had Healthcare agreements with,\u00a0<\/span><span title=\"38:28 - 38:41\" data-start=\"00:38:28.307\" data-end=\"00:38:40.799\" data-spk=\"0\" data-label=\"Jason\">but now they\u2019ve made it a national authoring that\u2019s available to everyone so you know if you if you need some prescription or you need some some medical advice and you don\u2019t want to go in and see a doctor you can\u2019t get an appointment.<\/span><br \/><span title=\"38:41 - 38:48\" data-start=\"00:38:40.968\" data-end=\"00:38:48.269\" data-spk=\"0\" data-label=\"Jason\">You can you do now use this Amazon Health Service to get a fast and easy.<\/span><br \/><span title=\"38:48 - 38:54\" data-start=\"00:38:48.485\" data-end=\"00:38:53.623\" data-spk=\"0\" data-label=\"Jason\">Um Health Care visit so you know we know Amazon has been kind of.<\/span><br \/><span title=\"38:54 - 39:01\" data-start=\"00:38:53.803\" data-end=\"00:39:00.785\" data-spk=\"0\" data-label=\"Jason\">Kicking the tires on the healthcare industry and they\u2019ve had a couple initiatives they had some Partnerships that they walked away from,\u00a0<\/span><span title=\"39:01 - 39:08\" data-start=\"00:39:00.924\" data-end=\"00:39:07.576\" data-spk=\"0\" data-label=\"Jason\">but there\u2019s another one where it seems like they haven\u2019t given up on the space and they\u2019re still you know rolling out and trying new things.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[39:08]<\/small>\u00a0<span title=\"39:08 - 39:17\" data-start=\"00:39:07.648\" data-end=\"00:39:16.619\" data-spk=\"1\" data-label=\"Scot\">Yeah and I hope they nail this because my my experience with the physical drugstores always terrible.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[39:17]<\/small>\u00a0<span title=\"39:17 - 39:23\" data-start=\"00:39:17.064\" data-end=\"00:39:22.773\" data-spk=\"0\" data-label=\"Jason\">Yeah I am not bullish on physical drug stores so again.<\/span><br \/><span title=\"39:23 - 39:29\" data-start=\"00:39:23.146\" data-end=\"00:39:28.806\" data-spk=\"0\" data-label=\"Jason\">You you know oil listeners now know what they should do for the investment there but like.<\/span><br \/><span title=\"39:30 - 39:39\" data-start=\"00:39:30.284\" data-end=\"00:39:38.847\" data-spk=\"0\" data-label=\"Jason\">You know the drug business used to be a retail business you walked into a pharmacy and you got all your prescriptions today the insurance companies mostly try to force you to use mail order.<\/span><br \/><span title=\"39:39 - 39:42\" data-start=\"00:39:39.460\" data-end=\"00:39:42.194\" data-spk=\"0\" data-label=\"Jason\">Pharmacy said the main reason people had to go to.<\/span><br \/><span title=\"39:42 - 39:50\" data-start=\"00:39:42.345\" data-end=\"00:39:49.615\" data-spk=\"0\" data-label=\"Jason\">Pharmacies has kind of gone away and as a retailer if you don\u2019t have to go there to get a farm prescription filled.<\/span><br \/><span title=\"39:50 - 39:54\" data-start=\"00:39:49.850\" data-end=\"00:39:53.647\" data-spk=\"0\" data-label=\"Jason\">The retail drug stores are awful retailers like they,\u00a0<\/span><span title=\"39:54 - 40:04\" data-start=\"00:39:53.714\" data-end=\"00:40:03.670\" data-spk=\"0\" data-label=\"Jason\">you know they don\u2019t have a good assortment they don\u2019t have a good prize they\u2019re they\u2019re deficient in digital in and if you watch all the moves they\u2019re making,\u00a0<\/span><span title=\"40:04 - 40:12\" data-start=\"00:40:03.725\" data-end=\"00:40:12.113\" data-spk=\"0\" data-label=\"Jason\">the thing that every retail drugstore is trying to do more than anything else is get out of retail and become a Healthcare company and own an insurance.<\/span><br \/><span title=\"40:13 - 40:19\" data-start=\"00:40:12.660\" data-end=\"00:40:19.180\" data-spk=\"0\" data-label=\"Jason\">So you know a lot of the CEOs of these companies now come from the insurance sides of the business and it it just doesn\u2019t seem like.<\/span><br \/><span title=\"40:20 - 40:28\" data-start=\"00:40:19.859\" data-end=\"00:40:27.779\" data-spk=\"0\" data-label=\"Jason\">The long-term future of us retail is to have you know multiple big National drug stores because the model is kind of waning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:28]<\/small>\u00a0<span title=\"40:28 - 40:36\" data-start=\"00:40:28.344\" data-end=\"00:40:36.095\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll I\u2019ll shut a small tear when they all go out of business and I can get things more efficient.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:36]<\/small>\u00a0<span title=\"40:36 - 40:50\" data-start=\"00:40:35.807\" data-end=\"00:40:49.976\" data-spk=\"0\" data-label=\"Jason\">Yeah I think at least one is going to have to survive because there are a lot of impromptu emergency get it right now kind of kind of needs but you know maybe down the road we\u2019ll do a grocery in Pharmacy Deep dive.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:50]<\/small>\u00a0<span title=\"40:50 - 40:55\" data-start=\"00:40:49.923\" data-end=\"00:40:55.270\" data-spk=\"1\" data-label=\"Scot\">Or Amazon will have things so close to you can get it in 15 minutes so you won\u2019t miss it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:55]<\/small>\u00a0<span title=\"40:55 - 41:01\" data-start=\"00:40:55.024\" data-end=\"00:41:01.129\" data-spk=\"0\" data-label=\"Jason\">Yeah you know one thing I will say like I thought you were going to say I won\u2019t feel bad if Amazon sells this because Healthcare in America.<\/span><br \/><span title=\"41:02 - 41:14\" data-start=\"00:41:01.526\" data-end=\"00:41:13.652\" data-spk=\"0\" data-label=\"Jason\">Royally screwed and a lot of people you know don\u2019t have in can\u2019t afford access to it so certainly it would be good if they fix that I will say Amazon rule that a service similar to a Walmart service which is really beneficial,\u00a0<\/span><span title=\"41:14 - 41:25\" data-start=\"00:41:13.731\" data-end=\"00:41:25.027\" data-spk=\"0\" data-label=\"Jason\">they\u2019re now offering generic versions of most chronic prescriptions for a flat five dollar fee and so one thing that has approved a lot in the United States in the last two years.<\/span><br \/><span title=\"41:25 - 41:33\" data-start=\"00:41:25.250\" data-end=\"00:41:33.073\" data-spk=\"0\" data-label=\"Jason\">Between Walmart and Amazon and actually like a big startup that Mark Cuban is running is a lot of these.<\/span><br \/><span title=\"41:33 - 41:40\" data-start=\"00:41:33.302\" data-end=\"00:41:39.761\" data-spk=\"0\" data-label=\"Jason\">You know prescriptions that were Out Of Reach for a lot of low-income people are becoming more affordable which is certainly a good thing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:40]<\/small>\u00a0<span title=\"41:40 - 41:44\" data-start=\"00:41:39.528\" data-end=\"00:41:44.142\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019ll take care of them but I\u2019d need my experience you better too.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:44]<\/small>\u00a0<span title=\"41:44 - 41:47\" data-start=\"00:41:44.191\" data-end=\"00:41:47.351\" data-spk=\"0\" data-label=\"Jason\">See how I found a way to end the show on a happy note.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:47]<\/small>\u00a0<span title=\"41:47 - 41:50\" data-start=\"00:41:47.093\" data-end=\"00:41:49.610\" data-spk=\"1\" data-label=\"Scot\">Yeah World Peace.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[41:50]<\/small>\u00a0<span title=\"41:50 - 41:57\" data-start=\"00:41:49.671\" data-end=\"00:41:57.146\" data-spk=\"0\" data-label=\"Jason\">Yeah and that you know last week we had a slightly shorter show and listeners told this they loved getting a little bit less of us and so\u00a0<\/span><span title=\"41:57 - 42:06\" data-start=\"00:41:57.014\" data-end=\"00:42:06.027\" data-spk=\"0\" data-label=\"Jason\">miraculously we have done it again we brought in a voluminous Amazon earnings call in a pithy 41 minutes,\u00a0<\/span><span title=\"42:06 - 42:14\" data-start=\"00:42:06.094\" data-end=\"00:42:13.731\" data-spk=\"0\" data-label=\"Jason\">so if you\u2019d like to reward us for our brevity the best way to do that would be to jump on iTunes and give us that five-star review.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[42:14]<\/small>\u00a0<span title=\"42:14 - 42:21\" data-start=\"00:42:13.947\" data-end=\"00:42:20.659\" data-spk=\"1\" data-label=\"Scot\">Thanks everyone we hope you enjoyed this Amazon Q2 earnings results and until next time.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[42:21]<\/small>\u00a0<span title=\"42:21 - 42:23\" data-start=\"00:42:20.684\" data-end=\"00:42:23.051\" data-spk=\"0\" data-label=\"Jason\">Happy Commercing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 308 is breakdown of Amazon\u2019s Q2 2023 earnings. Subscribe: ????? Amazon reported a strong […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-10077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10077"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/a><\/p>