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Wall Street Journal Report #1
"Amazon's Revenue Climbs Thanks to Cost Cutting". The Wall Street Jounal Online. 4 Apr. 00. date accessed
www.wsj.com
Amazon financial picture is looking better than last year with increased revenues and narrower losses. Revenue grew 8% from 847.4 million last year to $1.08 billion this year. Much of this increase in revenue is being attributed to Amazon offering deep discounts and free shipping on all purchases to its customers. While it is clear that these incentives are driving revenue, some analyst worry that Amazon may have to give up too much of their bottom line in the process. Amazon management seems confident that it can offset the erosion of the bottom line by reducing their cost of doing business in every area of the company and giving those savings back to the customers via deep discounts and free shipping. Something that is not mentioned in this article is whether the increased revenue is from higher invoice averages from the existing customers base, or new traffic to the site due to these promotions. By year end Amazon expects sales to reach $4.7 billion or more, a healthy 0% over year 00 sakes, and 5% more than they predicted earlier this year.Cheap University Papers on WSJ
Amazon financial picture is looking better than last year with increased revenues and narrower losses. Revenue grew 8% from 847.4 million last year to $1.08 billion this year. Much of this increase in revenue is being attributed to Amazon offering deep discounts and free shipping on all purchases to its customers. While it is clear that these incentives are driving revenue, some analyst worry that Amazon may have to give up too much of their bottom line in the process. Amazon management seems confident that it can offset the erosion of the bottom line by reducing their cost of doing business in every area of the company and giving those savings back to the customers via deep discounts and free shipping. Something that is not mentioned in this article is whether the increased revenue is from higher invoice averages from the existing customers base, or new traffic to the site due to these promotions. By year end Amazon expects sales to reach $4.7 billion or more, a healthy 0% over year 00 sakes, and 5% more than they predicted earlier this year
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