Amazon.com Inc (NASDAQ:AMZN) is due to report its results for the second quarter of 2022 on Thursday (28 July), just as digital advertising revenues are tumbling on online platforms.
Its results will follow those of social media platform Snap Inc (NYSE:SNAP), which reported that platform policy changes have "upended more than a decade of advertising industry standards".
Markets will likely be watching to see how much of the online retailer’s revenues are derived from sales revenue, as opposed to tax breaks after Amazon recently came under fire for offering preferential treatment to certain sellers on its platform.
According to accounts filed with the Luxembourg regulator, its European subsidiary Amazon EU Sarl posted a loss (of €2.1bn) last year despite sales rising 16% to €51bn.
During the period, the retailer controversially benefited from €1 billion in tax credits awarded by governments in Europe including the UK.
Earlier this month, Amazon announced plans to generate more than 4,000 new jobs in Britain, which would bring its workforce in the region up to 75,000.
It plans to launch a fleet of e-cargo bikes and on-foot delivery staff in some of London’s ultra-low emission zone postcodes to avoid extra charges.
Its expansion in the country comes as it faces dual pressures from regulators over how it treats sellers on its platform and the treatment of its workers.
Amazon recently faced a probe by the country's Competition and Markets Authority over whether it gave sellers an unfair advantage over third parties.
It has meanwhile launched a lawsuit taking legal action against Facebook groups that attempt to post fake reviews on Amazon in exchange for money.
The online retailer also recently warned that a UK online sales tax would unfairly punish small businesses on its platform.
Its quarterly finances follow reports that the retailer has been forced to cut the number of items it sells under its own brand in the face of weak sales.
Amazon has come under further pressure following a probe into workplace conditions in its warehouses in New York, Chicago and Orlando.
Investigations by the Strategic Organizing Center showed that warehouse injuries at the online giant rose 40% in 2021.
Facing mounting pressure from all sides, the online retailer has chosen to expand into unfamiliar territory, agreeing this week to buy healthcare tech group One Medical for approximately US$3.9bn.
Amazon’s senior vice president of Health Services Neil Lindsay said a technology-powered approach to healthcare will become a part of its long-term mission, in what is the latest diversification away from its core retail business.