Amazon reported huge loss despite 23% increase in sales
There is a saying that grass always looks green from the distance, and this is what we all think. People do think that Amazon, being an Online Shopping and Cloud service provider, must earn a huge fortune, but the truth is not the same what we always think. Every business sees ups and downs, but how you could feel when the loss increases 18 times in a year?
Amazon, that recently launched unlimited e-book subscription service and Fire Phone in the US, has recorded a huge net loss of around $126 million, though in 2013, the loss was around $7 million. So, we see that the loss has increase like anything.
However, Amazon recorded a 23% increase in sales, as it passed from $15.7 billion (Second Quarter 2013) to $19.34 billion (Second Quarter 2014). By geographical regions, it recorded an improvement of 26.3% in North America and 18.2% in international markets.
As far as operating income/loss is concerned, Amazon generated around $79 million operating income in the second quarter of 2013, but the second quarter of 2014 turned out bad leaving Amazon with $15 million operating loss.
Amazon is trying to make the customer service better and has already introduced new products and services, like, Prime Music that has more than one million songs, made kids TV series, launched two days delivery option for Prime, also started delivering products even on Sunday to 25% the US population, made parental control available to Fire TV and how could we forget its amazing smartphone (Fire Phone).
The founder and CEO of Amazon, Jeff Bezos said that Amazon will continue to provide better customer service, and will make it even better.