Amazon posts profit

Hurrah!

By Tim Richardson • Get more from this author

Posted in Business, 24th January 2003 14:05 GMT

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Amazon's decision to scrap shipping costs for orders over $25 appears to have been a hit with punters.

Reporting Q4 figures Amazon.com notched up a profit of $3m in Q4 2002, down from $5m during the same period in 2001. Net sales for the quarter skipped in at a record $1.429bn up 28 per cent compared to $1.115bn posted in Q4 2001.

The spike in numbers coincides with the popular holiday season when book and CD buying is at its peak.
And because of the apparent success of waiving shipping for orders over $25 Amazon is to extend this to a year-round offer.

Said chief Amazonian Jeff Bezos: "On top of the five price cuts we've made over the past 18 months, we're announcing today that we've decided to make Free Super Saver Shipping on orders over $25 a full-time, year-round offer.

"We're at a tipping point. Customers are now shopping at Amazon.com as much for our lower prices as for our selection and convenience," he said.

Sales at Amazon's international operations - in the UK, Germany, France and Japan - grew 76 per cent to $461m in Q4. Looking ahead, Amazon reckons Q1 2003 net sales are expected to roll in somewhere between $1.025bn and $1.075bn, a growth of around 21 - 27 per cent. ®

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