Amazon.com Q2 Sales Soar
July 27, 05
Online retailer Amazon.com increased net sales by 26 percent to $1.75 billion in the second quarter. However, a big bite by the IRS chopped net income by nearly 32 percent to $52 million compared with $76 million in second quarter 2004.
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“Amazon Prime members love getting unlimited two-day shipping for free with no minimum order size,” said Jeff Bezos, founder and CEO of Amazon.com, explaining the increase in sales.
“Though expensive for the company, Amazon Prime creates a premium experience for customers who join, and as a result we hope they’ll purchase more from us in the long term.”
The membership program, introduced in February, offers members unlimited, express two-day shipping for free, with no minimum purchase requirement on over a million eligible items for a flat membership fee of $79 per year.
The online retailer expects third quarter net sales to be between $1.76 billion and $1.91 billion, or grow between 20 percent and 31 percent, compared with third quarter 2004.
In May Amazon.com announced that it has started selling loose diamonds on its online jewelry store at “industry-leading prices”.