What: Amazon saw success in the final quarter of 2022 but will focus on its shopping experience as e-commerce fell under expectations.

Why it is important:  The retailer is focusing on technology to improve its shopping experience to overcome the economic stress it will face in the coming year.

Amazon pulled in USD 149.2 billion in net sales in the final quarter of 2022, beating analysts’ estimates of USD 145.8 billion.

But shares still sank 3% as e-commerce slid in under expectations at around USD 1 billion less than anticipated and Amazon Web Services also fell short for the second quarter in a row.

All of this resulted in quarterly earnings at just 3 cents per share when analysts expected 17 cents per share.

The blame fell on inflation and economic pressure for consumers spending less. Amazon saw consumers spend less on discretionary items, and shift to lower priced items and value brands but continue to spend on everyday essentials.

The retailer plans to focus on technology to improve its customer experience as consumer behavior changes and starts to feel economic pressures.

What Amazon’s earnings say about improving its shopping experience