Online retailer Amazon has this week reported a rise in online sales by a massive 51%, making it the biggest increase measured by the company in over ten years.
The boost, which enabled revenue to rise to $9.91 bn, is said to be down to the surge in sales of the Kindle ebook and other electrical items.
This suggests that shopping online is still very much the way to shop, despite the doom and gloom reported economically and on the high street. Between April and June inclusive, Amazon sold around £6 billion worth of products around the world, but significantly, its actual income dropped by 8% in the same period.
It has been stated that the reason for this is that Amazon is choosing to pump its profits back into making its prices cheaper so that consumers are more likely to choose it over rivals, thus making more sense in the long term for the company.
Even the most optimistic analysts didn’t come close to predicting Amazon’s rise in sales for the past quarter, with many now convinced that low prices and ease of use are the driving factors behind the global increase in shopping online.
Amazon founder, Jeff Bezos, said that it is the retailer’s wide selection of products, speedy delivery times and bargain basement prices which are allowing it to retain existing customers and win over newcomers. Amazon has been consistent in growing faster than rivals and bucking economic trends to pick up a greater proportion of sales. Whether it is companies like Amazon that are siphoning off cash from the high street and putting big chains against the ropes, is a point for debate.
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