Amazon.com net sales, marketing expenses up

Share this content:

Amazon.com reported a net sales increase of 51% in the second quarter to $9.9 billion, compared with the second quarter of 2010. Marketing expenses increased 61.6% to $341 million in Q2 for the Seattle-based e-commerce company.

The online retailer's operating income was $201 million in the second quarter, a decrease of 25.5% compared with the prior year. Net income also decreased, falling 8% year-over-year to $191 million in the period.

The company generated $5.4 billion in North America sales, an increase of 51% compared with the second quarter of 2010. Its international segment also saw a year-over-year increase of 51% in net sales to $4.5 billion

“The second quarter represented the strongest growth we've had year-over-year in 10 years,” said Thomas Szkutak, CFO of Amazon.com. “For Q3, we expect net sales between $10.3 billion and $11.1 billion.”

Amazon launched private sales site MyHabit.com during the quarter and acquired The Book Depository International, an online bookseller. It was also one of several e-commerce companies to terminate California advertising affiliate contracts during the period in protest of the state's passage of an online sales tax law.

“We remain heads-down-focused on driving a better experience for customers,” said Szkutak. “We're very focused on the customer experience. We feel very good about those investments.”  

Net sales increased 38% year-over-year to $9.86 billion in the first quarter, while marketing expenses increased 62.7% to $327 million.

Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here