Profit up at Amazon.com

Share this content:
The big e-commerce headline this week was the 16% profit gain at Amazon.com during the third quarter. Sales were up at Amazon but a number of analysts also fretted over increasing operating expenses. "Costly Growth for Amazon" read The Wall Street Journal headline and "Amazon Q3 Tops Street Ests, But Margins Fall, And Shares Drop," said Barron's Tech Trader Daily blog.

The company is opening 13 new distribution centers this year helping to fuel the 40% increase in operating expenses, reports The Journal. But there are other factors at play, too, such as its "Prime free-shipping loyalty program to more groups, including new parents and college students." It also continues to invest in updates to its Kindle e-reader.

One analyst in The Journal story, though, was not dissuaded:

"Amazon has been trying to build their fulfillment system in advance of the holidays," said Scott Tilghman, an analyst with Hudson Square Research.

That spending is worthwhile because "Amazon has a pretty sticky customer base," he said. "You get somebody hooked and they love coming back, and you have nice long-term revenue stream."

close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

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