Amazon Reports: Cautious About the Holidays
Amazon.com net sales rose 27% to $1.86 billion in the third quarter,
ended September 30, while net income dropped to $30 million compared to
$54 million in the same period a year ago. If the company's $40 million
patent-infringement legal settlement with Soverain Software were excluded, the
company's net income would have been $50 million.
The company predicted holiday sales would increase 13%-24%, weak numbers for Wall Street analysts.
The company has long stopped giving much information about book sales. This year it said only that the 1.6 million copies of Harry Potter and the Half-Blood Prince that it sold worldwide during the period was its "largest new product release" ever.
Sales in North America grew at a 28% pace (to $1.04 billion), mirroring sales growth in Amazon's international area, including the U.K., Germany, France, Japan and China. Sales of products from third party sellers continued slowly to rise as a percentage of company sales, to 30% from 28% last year.
Worldwide sales for the category "electronics and other general merchandise" grew 43% to $491 million, or about 26% of worldwide sales, as opposed to 24% the previous year. The media category--books, music and movies--is still the single-largest Amazon sales category, but continues to lose ground, relatively speaking.
---
In related news, online retailers are expected to keep shipping costs low or minimal despite fuel cost increases and rate hikes by carriers, according to today's Wall Street Journal. One survey found that four out of five online shippers are influenced by shipping fees when making buying decisions and that a similar number of online retailers plan to offer free shipping, although with some limitations.
The company predicted holiday sales would increase 13%-24%, weak numbers for Wall Street analysts.
The company has long stopped giving much information about book sales. This year it said only that the 1.6 million copies of Harry Potter and the Half-Blood Prince that it sold worldwide during the period was its "largest new product release" ever.
Sales in North America grew at a 28% pace (to $1.04 billion), mirroring sales growth in Amazon's international area, including the U.K., Germany, France, Japan and China. Sales of products from third party sellers continued slowly to rise as a percentage of company sales, to 30% from 28% last year.
Worldwide sales for the category "electronics and other general merchandise" grew 43% to $491 million, or about 26% of worldwide sales, as opposed to 24% the previous year. The media category--books, music and movies--is still the single-largest Amazon sales category, but continues to lose ground, relatively speaking.
---
In related news, online retailers are expected to keep shipping costs low or minimal despite fuel cost increases and rate hikes by carriers, according to today's Wall Street Journal. One survey found that four out of five online shippers are influenced by shipping fees when making buying decisions and that a similar number of online retailers plan to offer free shipping, although with some limitations.