Amazon Cuts Prices, Raises Profits
By George Anderson
Amazon.com reported yesterday it has generated its very first profit in a quarter other than the fourth.
According to the New York Times, “Amazon, which some investors wrote off as being on the brink of insolvency a few years ago, is now generating cash at a steady clip.
Its low prices and increasing selection of goods from other merchants have accelerated its growth in North America. Its sales are still growing rapidly in Europe and Japan, but
the pace of growth is slowing overseas, largely as a result of increased price-cutting and offers of free shipping in many countries.”
Moderator’s Comment: What do you see as Amazon’s greatest opportunity and biggest obstacle to continued growth?
For us, the answer is the same: Amazon needs to continue expanding on its relationships with other retailers for it to keep generating sales and profits
beyond the fourth quarter alone. [George
Anderson – Moderator]