Feeds

Amazon shames eBay with 24 per cent profit bulge

Meltdown talks to the hand

Choosing a cloud hosting partner with confidence

eBay blames its shrinking revenues on the melting economy. But sales continue to expand over at Amazon.com, eBay's conspicuous rival in the e-commerce game.

During the first three months of the year, Amazon sales reached $4.9bn, a 18 per cent leap from the same quarter last year. And if you ignore the impact of inconvenient currency exchange rates, you can argue a 25 per cent revenue climb. That translates to quarterly profits of $177m, a 24 per jump from early 2008.

During a conference call with analysts and reporters, chief financial officer Thomas J. Szkutak indicated that the company has noticed some sort of growth slowdown during the past two quarters. But this hardly compares to the epic shrinkage over at eBay, which just recorded a year-over-year revenue decline for the second quarter running. Before Q4, eBay had never endured such a drop for even a single quarter.

"Starting in Q4, we saw solid growth rates, but certainly not a strong as we saw from the several quarters previous to that and we saw the same thing again in Q1," Amazon's Szkutak said. In the first three quarters of last year, Amazon's revenue growth topped 30 per cent year-on-year, the CFO said.

"But," he added, "we're not doing anything different than we've done in the past."

In addition to growing its core etail biz - sales of electronics and other general merchandise grew 38 per cent to $2.05bn - it appears that Amazon is eating away at eBay's secondhand merchandise biz. Per usual, Amazon failed to offer specific numbers for third-party sales. But it did say that the number of third party items shipped through its Fulfillment by Amazon service increase 300 per cent year-on-year.

In typical fashion, the company attempted to lay the credit for this ridiculously healthy quarter on its new Kindle 2 ebook.

"We're grateful and excited that Kindle sales have exceeded our most optimistic expectations," read a canned statement from chief executive Jeff Bezos tucked into the company's Q1 press release. But as usual, the company gives no indication of how many Kindles it has actually sold. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.