The Ecommerce Experts

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Amazon have benefited from high fuel prices and doubled their three-month profit.

The online retailer Amazon has beaten profit forecasts as it cuts prices to attract cash-strapped customers.

Net profit for the three months to the end of June 2008 doubled to $158 million, beating forecasts in what is traditionally the weakest quarter of the year.
Sales of books, CDs and DVDs rose 31% while electronics and general merchandise sales were up 58%.
Analysts said Amazon was benefiting from high petrol prices, which made people more likely to shop from home.
"Overall Amazon would prefer a more robust consumer environment, but to some degree there are some benefits in that consumers aren't going to drive to get to the brick and mortar store," said Dan Geiman, an analyst at McAdams Wright Ragen.
Other analysts were surprised at the rosiness of Amazon's forecasts for the full year.
"They seem pretty confident about the rest of the year and slightly raised full-year guidance," said Martin Pyykkonen, an analyst at Global Crown Capital.
"I didn't think they would given the macro-economic environment, but maybe high fuel prices are driving more people to shop online."

At teclan we are confident that online retail should be able to take advantage of the current economic situation as long as retailers are aware that customers will be looking for the best possible value for money for their purchases. Amazon certainly ensure their customers are made aware of their deals - are you?

Source: BBC Website

 

Published in August 2008 newsletter - issue 17