E-Commerce News: Ghost of Christmas Past Haunts Amazon - 0 views
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Amazon's net income was US$177 million, or 38 cents per share, a 57 percent percent drop from a year ago.
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Sales for the three months before Dec. 31 came out to $17.4 billion, lower than Wall Street expected over the traditionally busy holiday season.
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The company used more third-party vendors than usual, which helps margins but cuts down drastically in revenue.
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The world's largest online retailer has also been using promotions such as the Amazon Prime program, where customers can pay $79 a year to receive unlimited two-day shipping. The offer draws customers to the site, but over a busy holiday season, the shipping costs hit the retailer hard.
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A lot of people underestimate the profit of the e-book. You don't have to pay money for delivering or printing, so you can get tremendous revenue,"
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In Amazon's last quarter, net income dropped by 57 percent from a year ago. Sales for the three months before December 31 came out to $17.4 billion, lower than Wall Street expected over the traditionally busy holidy season. It is predicted that for the next quarter outlook, there could be anywhere from a gain of $100 million to a loss of $200 million. While Amazon continues to profit in Sales of its best selling Kindle devices, there were a variety of factors that contirbuted to its losses. The flooding in Thailand slowed down production for many tech companies. Third-party sellers (which give a 13% commission to Amazon as oppsoed to 100% commission when Amazon sells themselves) were used more than usual. Promotions such as the Amazon Prime program which allows the customer to pay a fixed rate and get umlimited two-day shipping hurt the retailer hard over the busy holiday season with shipping costs. Other reasons were lower demand for skimwords