Thursday, November 20, 2008
Amazon, still on top...
Amazon, like many other consumers have been very shaky about business within the past months due to the economic recession, but apparently it's revenues have grown 41% despite the cold feet consumers have been having about shopping. "Even if people are buying less overall, Amazon is benefiting." says Jeffrey Lindsay, an analyst at Sanford C. Bernstein.
Jefferey P. Bezos, the chief executive at Amazon explains, sales have gone up due to on Amazon's end due to the rising gas prices. Customers much have rather shopped online as oppose to driving to the stores, and luckily Amazon had no issue with that. Revenue rose 41 percent, to $4.06 billion, from $2.89 billion in the year-ago quarter. Excluding the benefit of exchange rates, Amazon’s sales would have been roughly $3.9 billion.Amazon, has been making considerable enhancements to its offerings in recent months, in search of new revenue opportunities.
In April, it announced a new service, called TextBuyIt, that allows customers to shop for products via text messaging on their cellphones. Who would have known that shopping could get as easy as a press of the "Send" button. Along with TextBuyIt, it also announced a movie-streaming service called Amazon Video on Demand and a servive for TiVo users to buy the products they see advertised and promoted on talk shows.
