Amazon May Be Profiting from the Bad Economy
- 1
- Add a Comment
In a bad economy, Amazon is reporting increased profits:
“Amazon.com, the world’s largest Internet retailer, reported that its second-quarter profit more than doubled as a jump in sales of electronic items combined with a rise in overseas revenues as the cheap dollar made products cheaper for customers outside the US.”
link: Amazon profit doubles on sales of electronics
Further, the increased sales may reflect a shift in how some people shop. It may be a saving to stay home and buy online. It is not cost efficient to drive to the mall or to the city shopping area. The fuel costs to drive are just prohibitive. Online retailers may see more traffic as people’s shopping habits shift.
It will be the wise online retailer who makes the shipping costs reasonable to purchase those online bargains.
Catherine Forsythe
One Comment
D Lowrey
July 25th, 2008
at 12:50pm
While Amazon may be reaping bigger profits in this economy…if you live…at least 100 miles from a major metro center like myself…you find that Amazon & other online retailers are the only way to get many items you would not be able to otherwise. In addition…with the cost of fuel & time to get to a major metro center…the cost of even overnight shipping is still less than 1/2 the cost of making the trip.
Perhaps the greatest benefit…saving the cost of sales tax. Out here…the local governments are doing their best to raise the sales tax to 10% and more. Detesting the area I live in…am more than happy to make sure my tax dollars ARE NOT used for anything in this area.