It seems almost unimaginable that online retail giant Amazon would enjoy anything but success. However, remarkably, the company has announced a substantial drop in its profits – and has warned about further troubling results this year.
In total, its net income for the three months to the end of December was just $177million – that’s down from $416million during the same period in 2010.
Investments the key
Don’t be fooled by the numbers, however – customers are not turning away from Amazon. In fact, the opposite is true – because revenues actually increased during the period to $17.43billion. That’s an increase of 35 per cent.
One of the key drivers of its success has been the popularity of the Amazon Kindle. The e-book reader enjoyed a surge in sales during the nine weeks until December 31, with sales in the USA increasing by 177 per cent compared to the previous year. This coincided with the launch of the new Amazon Kindle Fire tablet – and now the Kindle is Amazon’s best-selling product across both the US and Europe.
However, Amazon is losing money primarily because of its investments – and these are likely to continue through the early months of 2012.
Despite losing money, Amazon is still keen to offer some great deals to its customers – with a host of exciting offers and deals now available through Moneysaver.ie.
Among the offers currently available are: Xbox 360 games from under £15 (offer expires on February 15); and music CDs from under £5 (offer expires on February 8). You can get up to 20 per cent off GHD hairstyling products until February 9; up to 60 per cent off fragrances until February 24; and up to 60 per cent off Dyson, Vax and Hoover vacuum cleaners until February 22.
It’s well known that buying online is a huge money saver thanks to the savings that can be made on overheads. Amazon is particularly cheap because it has access to marketplace sellers and there are fantastic deals available, including: up to 60 per cent off men’s watches until February 22; the chance to save on selected paperbacks until February 23; and the chance to pick up the new Kindle itself from just £89. You can also get up to 20 per cent off any Amazon Kindle cover when you buy the model.
The Amazon voucher code section at Moneysaver.ie is constantly updated with new offers so even if these deals expire you should still check back to see what’s available every time you plan to shop with the online retailer.