Amazon reaches disappointing oversees sales and operational results | RetailDetail

Amazon reaches disappointing oversees sales and operational results

Amazon reaches disappointing oversees sales and operational results

American online giant Amazon had unexpectedly disappointing results for its expansion outside of the US in the second quarter of 2013. Sales were only 13 percent higher than in the same period of last year.

US area of biggest growth

Globally Amazon had sales of 15.7 billion dollar (12 billion euro) between early April and end June, 22% more than in the same period of 2012. That was a disappointing number, because the economic crisis in Europe keeps on troubling the company.

 

Sales outside of the US ‘only’ went up by 13% to 6.2 billion dollar (4.7 billion euro). The American home market grew by an impressive 30 percent.

 

Investing in sales leads to negative results

As operational costs soared by 23%, net profits of 7 million dollar turned into a net loss of the same amount. The last time Amazon made a loss, was in the third quarter of 2012.

 

Amazon is spending a lot of money to ensure future growth. For example, it invests heavily in more storage space closer to the consumers. That way the company wants to ensure faster deliveries.

 

Cloud computing and video content

Amazon is also trying to expand its range by not only focusing on the online sale of physical goods. They are also offering cloud computing to companies and governments for example. In that same vision they made the switch from books and cd to eBooks and mp3-files. The best sold items on Amazon currently are digital products.

 

That is also why the company is buying the rights to video content, so it can for example stream films or develop products for Kindle.

 

Next quarter also difficult

For the third quarter, Amazon is expecting sales between 15.45 billion dollar to 17.15 billion dollar (between 11.6 and 13 billion euro). The operational result is expected to be between a loss of 100 million dollar and a profit of 275 million dollar (-75 and +200 million euro).

 

That prognosis is so broad, because Amazon is taking several one-off expenses into account, but even the highest figures are lower than what was expected by financial analysts.

Questions or comments? Please feel free to contact the editors


Microsoft builds competitor for Amazon Go

14/06/2018

Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Amazon bans customers who return too much

24/05/2018

Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

LVMH invests millions in fashion search engine Lyst

24/05/2018

French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.

Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.