Ready, Fire, Aim! - Mihail's Public Blog: Amazon trades gross margins for business from customers

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Thursday, October 24, 2002

Amazon trades gross margins for business from customers

Amazon's revenue soared and net loss dropped in the latest quarter according to this News.com story:

The e-tail giant posted a net loss of $35 million, or 9 cents per share, on sales of $851 million. In the year-ago period, the company lost $170 million, or 46 cents per share, on $639 million in sales.

...Amazon was able to improve its results based on its pricing strategy, Jeff Bezos, the company's chief executive officer, said in a statement.

"We’ve lowered prices five times over the last 15 months, and simply put, it’s working," he said.

...Amazon saw its shipping revenue stagnate and losses mount as a result of the free-shipping offer, said Mark Peek, the company's chief accounting officer. The e-tailer's shipping services lost $10 million on $73 million in revenue in the quarter, compared with a loss of $2 million on $74 million in revenue in the year-ago period.

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