The company said net sales included $1.3 billion from Whole Foods Market, which Amazon acquired on August 28.
Amazon's results went against expectations that it would invest almost all of its earnings into new areas as it has in the past.
Prime Day, now in its third year, also helped boost performance during the quarter at home and internationally, Olsavsky said. Net income was 256 million dollars in the third quarter or 0.52 dollar per diluted share compared with 252 million dollars or 0.52 dollar per diluted share, in third quarter 2016.
Aside from the company's takeover of Whole Foods, which has shaken the grocery industry on both sides of the Atlantic, Amazon has made a number of new developments in the most recent quarter.
Amazon's early Whole Foods initiatives included price reductions, selling whole Foods products on Amazon.com and installing Amazon Lockers at Whole Foods locations to drive foot traffic. That easily beat the 2 cents per share analysts had expected, according to FactSet.
"We think we'll also be developing new store formats, " he said.
Revenue from online stores increased by 22% to over $26.4 billion, which is the fastest growth seen by Amazon in that segment for over one year.
Amazon Web Services (AWS), which handles data and computing for large enterprises, saw its profit margin expand from the previous quarter.
Amazon's stock price soared to more than $1,000 per share in after-market trading on Thursday after the company reported higher-than-expected revenues and offered an optimistic projection for its next quarter, which includes the critical holiday season.
Investors have continued to give a pass on Amazon's laser-thin profits.
Short believes that Whole Foods' food innovation cycle is likely to slow as the two companies further integrate, and that if Whole Foods becomes more like conventional food stores, may even come to a halt, while competitors - most notably Trader Joe's - continue to become more innovative.
Amazon also kicked off its National Football League live streaming deal and suspended the head of its studio division, Roy Price, after sexual harassment claims made against him.
For its guidance, Amazon expects net sales between $56 billion and $60.5 billion for the fourth quarter, and operating income between $300 million and $1.65 billion.
It is unclear what impact the shakeup may have on Amazon's ability to secure video that competes with Netflix Inc for viewers' attention.