Amazon post record profits
If anyone needed further evidence that prudent shoppers are ditching the high street for the Internet, then take a look at Amazons latest sales figures.
Net profits at Amazon have doubled to $158m, this during the credit crunch and this during weakest sales quarter of the year
The BBC news site states ‘Amazon has beaten profit forecasts as it cuts prices to attract cash-strapped customers.’
I disagree with this statement – Amazon does have good offers, but Amazon offers me a way to get what I want without the inconvenience of having to drive to a shop to get it.
Traditional retailers have been coining in it for years. Look at Tesco, Tesco could do a great deal to help the UK’s inflation. Does Tesco need to make 2.5b profit every year? Of course not, so why does the retailing giant not offer more discounts to shoppers? It can afford too and as Tesco likes to remind us ‘Every little helps’.
Amazon have got it right, and the traditional high street retailers have got it wrong. Only last week I wrote a blog upon Marks and Spencer seeing a downturn in profits. Everyone was quick to blame this on the ‘credit crunch’, so what are the same doom-mongers going to say about Amazons bright set of results? Did Amazon just get lucky?
Listen-up traditional retalers, Amazon have not got lucky, Amazon is not a fluke in turbulent times, Amazon is the flag-bearer for a great number of online businesses that give consumers more than traditional retailers ever have. Amazon have some very clever people working for them and the latest set of business results reflect this.
Times are changing, the world is going online and it is high time the financial analsyts and the media reflected this. It may be doom and gloom for bricks and mortar retailers who are not having it how they would like, but it’s not the same online.
Perhaps it’s time for your business to start taking the Internet seriously, if you want proof of how good business can be online, just ask an Amazon shareholder!