Amazon launches jewellery offer as sales sparkle
Strong first quarter growth for online giant
Amazon’s transformation from an internet book retailer to an online department store has continued with the launch of a jewellery section on its US website.
The online retail giant pledged to undercut other retailers by swapping margins for volume sales. As well as buying off-the-peg designs, customers will be able to create their own diamond ring by selecting the shape, size, setting, and quality of the band and stone.
Jeff Bezos, founder and CEO of Amazon.com said: “During our beta test more than 100,000 customers ordered items from our Jewellery store.
“While the average margin in jewellery retailing is approximately 45 per cent to 50 per cent, we target substantially lower margins on our jewellery sales, and lower still, about 13 per cent, on diamond jewellery. This is in keeping with our strategy of driving growth through low prices.”
[img r]amazon.jpg[/img]The launch of the latest Amazon ‘department’ follows strong first quarter sales for the business.
North American sales, including the US and Canadian sites, grew 20 per cent to $847m. International sales, including the UK, German, French and Japanese Amazon sites, grew 80 per cent to $684m. The quarter saw the launch of a Home & Garden online store in Germany, and DIY and Garden & Outdoors stores in the UK.
