2. August 2012 08:39
||Amazon is the world's online retailer and there's no doubt they have showed no signs of slowing down.
Fortune reported Thursday Amazon's profits dropped 96% this second quarter. The company's profits dropped to a whopping $7 billion or 1 cent per share, which was at a stark contrast $191 million in the same quarter last year. Their sales weren't lacking at all, being up close to $3 billion more than this time in 2011. Every businesses objective is togrow in sales and profits at the same time, not one or the other. With a company as robust as Amazon, the only logical reason for these numbers is robust spending.
CEO Jeff Bezos has stated the company increased expenditures endeavoring to expand in other businesses. The report stated Amazon has opened 8 new warehouses this year so far, which added to their expenses. The company plans on opening 10 more this year. It also made great investments into Amazon Web Services and their business strategy of same-day delivery of their products. They have been certainly spending their profits with hopes of gaining them back in the future.
Tom Szkutak, Amazon CFO said, "We don't see a way to do that [same day nationally] on a broad scale economically" (reported in The Financial Times). Amazon sees the value and opportunity in same-day delivery in their retail sector of business. Customers would run to the option of a same-day delivery. With online business trends, how you can deliver your product is just as crucial as the product itself.
Businesses may not have the expertise to create a system for nationwide, however, couriers do. They are the way to achieve same-day delivery services. Nationwide couriers like AQuickDelivery has the footprint to be able to provide a logistical solutions to handle these types of services large corporations desire. AQuickDelivery is also equipped with the most modern technology in the courier industry to service businesses on a massive scale. From small packages to palletized freight, AQuickDelivery can meet courier service needs and help profits grow.
References: 7.26.12, Fortune, JP Mangalindan-Amazon profit drops 96%