Amazon Posts Solid Gains
October 22, 2009 by Mark Ellis
Filed under Business
Amazon.com has posted a third-quarter profit increase of 68 percent, a signal that things could be getting a lot better for online retailers as the holiday season remains just around the corner. A 44 percent rise in sales of electronics and general merchandise was one of the main factors in Amazon’s strong performance, a category that now comprises 43 percent of Amazon’s total sales.
The company also posted a 17 percent increase in sales of media, a figure that was surprisingly low in the second quarter because of disappointing video game sales. This result was strengthened by the release of several popular books, such as Dan Brown’s The Lost Symbol.
Amazon’s strong third-quarter results come at a time when the company is preparing for an all-out brawl with brick-and-mortar retail supergiant Wal-Mart. Wal-Mart has recently beefed up its online presence, engaging in a price-war with Amazon and other online retailers over books and introducing services that are reminiscent of the services already offered by many online retailers.
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