Internet Amazon sacrificing profit for growth drive : New gizmos, Gadgets gazette Blog

Tuesday, May 17, 2011

Internet Amazon sacrificing profit for growth drive

Internet Amazon sacrificing profit for growth drive

The world’s largest online retailer Amazon is investing billions and take this into account, to annoy the stock market with falling profits. In the first quarter of the U.S. company still earned $ 201,000,000 – a third less than in the previous year.

At the same time, sales soared by 38 percent to 9.9 billion dollars (6.8 billion euros) is high, such as Amazon announced after U.S. market close on Tuesday.

Amazon attracts customers with low prices and innovative offers. In addition, the dealer puts a lot of money into advertising, into new product areas, the expansion of its logistics centers and the business with cloud computing, providing data and software from the net. In this business, Amazon is a leading player.

Amazon has grown up with books and CDs, and now sells almost everything from televisions to man’s suit. The Group also operates Web hosting, offers movies in the online rentals and sells apps for booming Android smartphones. Amazon recently launched in the U.S. also has a cloud-music service. When he could come to Germany, leaving open Germany boss Ralf Kleber.

"We were never enthusiastic about the long-term opportunities," said founder and CEO Jeff Bezos and company tried to win in the investor for its growth. The post-trade share declined slightly.

Even Germany boss adhesive defended the level of investment. Now is the right time for that, also in view of the competition. Amazon in Germany open two new dispatch warehouse and a warehouse previously occupied temporarily operate continuously. "We create thousands of jobs in Germany," said Kleber.

The high costs are also introducing new product groups necessary: "For with the launch begins work on first." Among other things, would have won brands and collection will be collected. Amazon is building this country, among other things his business with fashion and footwear, and consumer goods. With the launch of the German E-book publication in recent days, glue was satisfied. "The Kindle readers have made it debuted at # 1 in the electronics category – and that’s saying something with our offering in the area."

Bezos wants to continue to invest heavily in new products and services. In the current second quarter is expected to present image repeat so. The CEO predicted a sharp rise in sales and falling profits. In previous quarters, had the Spendierhosen Bezos, and so angry shareholders.

Amazon must be careful – the online marketplace eBay is sitting the market leader in the neck. Both companies have now built a small empire. Amazon to include not only the shoe seller and the baby products specialist and the online drugstore Ebay had the German online-shopping club brands4friends taken and, with his daughter to Paypal and pay services on the web. Even Amazon does not exclude, at some point in financial services to get in, but currently there are no concrete plans, "said Kleber.

In the important Christmas trading Ebay grew considerably slower, but it deserved more. Ebay wanted to present the results for the first quarter late Wednesday evening.

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