Amazon sees quarterly loss narrow as sales surge

Amazon logo on an iPad Amazon has been looking to attract more consumers and also reduce shipping costs

Related Stories

Amazon, the world's largest online retailer, saw its losses narrow in the third quarter as its sales grew more than expected.

It reported a net loss of $41m (£25m) for the July-September period. That is down from $274m a year earlier.

The firm said that its sales surged 24% from a year ago to $17.1bn.

The firm forecast its sales would grow further in the current quarter. That saw its shares rise by as much as 9.6% in after-hours trading in New York.

RJ Jottovy, an analyst with Morningstar, said that "it looks like the revenue momentum will continue into the fourth quarter" despite the macro business environment being tough.

Amazon said it expects fourth-quarter sales of $23.5bn to $26.5bn. Analysts had forecast revenue of $25.9bn.

'Busy few months'

Start Quote

It's been a busy few months”

End Quote Jeff Bezo Amazon

This is the third quarter in a row that Amazon has posted a net loss.

However, the firm has been taking steps to try to turn around its fortunes.

This includes expanding its Kindle line of e-readers and tablets and boosting its delivery network and cloud-computing services.

The company has also been building more warehouses to reduce shipping costs and is adding robots to increase its efficiency in delivering orders.

Jeff Bezos, founder and chief executive of Amazon, said in a statement that ''it's been a busy few months" for the company.

At the same time some of the services being offered by the firm have also helped to attract consumers.

Mr Bezos added that one Amazon service called Prime had signed up "millions" of new members.

The service offers free two-day shipping for eligible purchases. Members also get access to Amazon Instant Video and have the ability to borrow books from other Kindle owners.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    SHARING ECONOMY 06:31: Radio 5 live

    What is the sharing economy? "The sharing economy defines the assets you own and skills you have" says Debbie Wosskow, chief executive of Love Home Swap on 5 live. (Any the wiser?) Customers need protection, but regulation needs to keep up with this emerging market, she says. She's writing a review into the sharing economy.

     
  2.  
    CONSERVATIVE CONFERENCE 06:17: Radio 5 live

    Lord Digby Jones, the crossbench peer and businessman is on 5 live after his appearance at the Conservative Party conference. He is worried people think money grows on trees, rather than coming from business, but also says business should mend its image: "I don't want chief executives paying themselves big bonuses [right now]. They may deserve it, but it sets a lousy example."

     
  3.  
    ARGENTINA 06:13: Radio 5 live
    President Cristina Fernandez

    The boss of Argentina's central bank has resigned. Juan Carlos Fabrega had been calling the government to tackle inflation and rein in spending. That created conflict with the nation's economy minister. The BBC's South American Business Reporter Katy Watson says the resignation doesn't make President Cristina Fernandez de Kirchner look good either.

     
  4.  
    PARIS MOTOR SHOW 06:07: Radio 5 live

    Jurgen Stackman, chairman of carmaker Seat is on Radio 5 live. Ten years ago electric vehicles were seen as the future, so what went wrong? Industry watchers were very optimistic about the speed of people picking them up, he says. Electric cars still have mileage and range limitations and families with one car don't want to rely on an electric car, he adds.

     
  5.  
    US SHARES SLIDE 06:00: BBC World News
    New York Stock Exchange

    There were sharp losses for US shares overnight. On World Business Report, Michael Hewson, chief analyst at CMC Markets reminds us that the US market has had a good run recently. But there is not much to be positive about at the moment, he says. The recent economic data from China and Japan has not been great. Traders are also preparing for higher interest rates in the US, Mr Hewson says.

     
  6.  
    06:00: Howard Mustoe Business reporter

    Good morning. You can get in touch via email bizlivepage@bbc.co.uk and on twitter @BBCBusiness

     
  7.  
    06:00: Ben Morris Business Reporter

    There were sharp losses for US shares overnight, so it will be interesting to see how Europe responds to that later. Plus we'll have reports from the Paris Motor Show. It should be a fun morning, so stay with us.

     

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.