Investments lead to losses at Amazon | RetailDetail

Investments lead to losses at Amazon

Investments lead to losses at Amazon

Amazon has suffered another big loss in 2015's first quarter, which comes somewhat as a surprise after last year's sizable profit in the first quarter. The main reason for the difference is the fact that Amazon has made several big investments.

Investments

Amazon's first quarter of 2015 resulted in a 22.72 billion dollar (21 billion euro) turnover, up 15 % compared to last year. Less good news from the profit front however, as back then it managed a 108 million dollar (100 million euro) profit, which has now turned into a 57 million dollar (52 million euro) loss.

 

The American eCommerce giant launched a shop on the Chinese Tmall.com site, which belongs to Alibaba, and it also launched a DIY platform, called Amazon Home Services. That used up any profit this quarter, but should also help generate additional turnover in the next quarter, with a predicted 7 - 18 % turnover increase. It remains to be seen whether that quarter will yield any profit though.

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