Free shipping boosts Amazon international sales
Online retailer cutting costs and building customers
April 25 2003
The launch of free shipping offers for customers using its international sites helped online retail giant Amazon grow its sales to $1.08bn in the first quarter of 2003, a 28 per cent increase on the same period in 2002.
It was the first time Amazon sales topped $1bn in a quarter which did not include the key Christmas sales period.
Tom Szkutak, chief financial officer of Amazon.com, said: “Our strategy of driving down costs to give customers lower prices continues to pay off. In the first quarter, customers took advantage of Free Super Saver Shipping and broad everyday low prices, which created our first-ever non-holiday quarter with sales over $1 bn, but this was only possible because we reduced our costs in virtually every area of our business.”
The first three months of 2003 saw the launch of kitchen and home product ranges through the UK and German websites. Amazon is pledging to further cut prices and increase product ranges for international customers, as it seeks to build market share outside the US.
International sales grew 68 per cent to $379m in the quarter, and Amazon is now offering free shipping options through its UK, German, French, Japanese and Canadian sites.
The company has also been taking pre-orders worldwide for copies of Harry Potter and the Order of the Phoenix, the fifth book in the successful series. The delivery of the book to customers on Saturday, June 21 will be “the largest single e-commerce distribution event in history,” said Amazon.
