Stay-home shoppers and Kindle send Amazon soaring

One of the few remaining original dotcoms from the early days of Web 1.0, Amazon made $199 million profit, up from $118 million the same period last year. What’s more, it’s not all cost cutting either - sales are up 28% to $5.45 billion. That’s a pretty hefty increase given the chilly economic climate, even for a company which has expanded out of books and music and now sells pretty much everything.

One popular move has been a $20 price cut on new gadget the Kindle e-reader – a portable electronic book which is now the site’s bestseller, says Amazon founder Jeff Bezos ‘Kindle has become the No1 best-selling item by both unit sales and dollars – not just in our electronic store, but across all product categories’.

So in future you may not need all those pesky bookshelves – your electronic book reader will hold thousands of titles and still fit in your pocket.

Analysts have pointed out that although the Kindle has certainly been a hit, it represents only a small fraction of the 44% increase Amazon saw in electronic sales. Predictably enough, this has been attributed to people spending more time at home because of the recession. 

The international market, which now comprises nearly half of the company’s sales, held more good news with sales up by a third in the last three months.

Here in the UK, it seems that ever more shoppers are turning their backs on the high street in favour of the virtual experience in the comfort of their own homes. And Amazon’s reassuring and well-policed marketplace goes down a storm with less  experienced web-bargain hunters. Especially when compared to some of the online shark-tanks which can be found elsewhere.

The firm has also taken steps to ensure that the postal strike won’t hit its’ vital Christmas trade here, pulling one £25m parcels contract from Royal Mail and lining up other alternative suppliers should the disruption continue.

We think Amazon should certainly continue to send their financial reports out by email – with performances like this one, they wouldn’t want the good news to get lost in the post.

In today's bulletin:

Pound tumbles as recession breaks all records
Stay-home shoppers and Kindle send Amazon soaring
Look after your money, with YouTube
Will fires spell Tata for Nano, world's cheapest car?
The benefits of a nicely decorated desk