Amazon.com announces 18% increase in sales Q4
Despite a weakened U.S. economy, Amazon.com announced a net sales increase of 18% to $6.70 billion. Up from $5.67 billion in Q4 2007. This comes as a surprise to Wall Street. This large increase was triggered by holiday discounts and came at the expense of lower profit margins. The loss in profit margin makes the sales increase a bit deceiving in terms of profit, but nonetheless, still an impressive fourth quarter.
“We remain relentlessly focused on serving customers with low prices, great selection and free shipping offers, including Amazon Prime,” said Jeff Bezos, founder and CEO of Amazon.com. “We’re particularly grateful for the unusually strong demand for Kindle in the fourth quarter.”
The wide variety of products that Amazon sells enables it to post sales over 14 billion yearly and claim reigns of top Internet retailer by a landslide. Internet retailers who do not sell their products through Amazon would need a pretty darn good reason to pass this up.
In my experience, managing large Amazon stores can be quite a cumbersome job. Selling fewer products can be manageable, but don’t sacrifice sales for fewer products and simplified management. If you are looking for an Amazon expert to assist you, check out ChannelAdvisor. A recent announcement of restructuring and reduction in worforce should not remove them from your radar. Scot Wingo of ChannelAdvisor says they will be maintaining their eBay services, but focusing more attention on places, like Amazon.com, where they can reach further growing potential.
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