Amazon Sales Up Amidst Recession
Despite the ongoing recession, online retailer Amazon on Wednesday reported its highest holiday sales which increased by 18 percent or $6.7 billion. With this strong sales, the company’s net income rose by 8.7 percent to $225 million.
The success of Amazon is attributed to its aggressive marketing strategy including discounted products, popular selection of items, and shipping promotions.
Online retailer Amazon marked its biggest holiday sales amidst the ongoing economic recession which affect most companies operating in the Internet field.
According to a report released by the Internet giant, its net income increased by 8.7 percent to $225 million. Meanwhile, sales rose by 18 percent to $6.7 billion—a positive outcome despite low consumer confidence and recession.
Earlier, rival eBAy released its fourth-quarter sales which declined more than 6 percent. The company’s online transaction also slumped by 12 percent, resulting to a double-digit revenue decline. According to the online retailer, the revenue was downed by 16 percent to $1.3 billion.
Some experts believed that eBay’s slumping sales is due to its complex product categorization. This is not the case in Amazon which focused on selecting popular consumer products and categorized these in a way that online shoppers can easily spot the items they would like to buy.
Another strategy of Amazon that contributed to its strong fourth-quarter sales is the low price selection. Considering the economic condition, the company has decided to offer consumers with a price selection which they can afford.
Amazon is likely to prosper for the coming years, according to the latest forecast. Meanwhile, some e-commerce companies are not facing the same enviable forecast of Amazon, experts said.
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