Amazon.com reported sales of $1.08 billion in first quarter 2003, up from $847.4 million in first quarter 2002. The online retailer reduced its net loss during the quarter from $23.2 million a year ago to $10.1 million. The quarter ended March 31.
While the Seattle-based firm’s fulfillment costs actually rose between quarters, from $89.8 million to $103.7 million, they fell as a percentage of sales, from 10.6% to 9.6%. The company also cut its marketing spending from $32.2 million to $28.2 million.
Amazon credited a discounting policy as being key to its first-quarter revenue. "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 billion, but this was only possible because we reduced our costs in virtually every area of our business," Tom Szkutak, chief financial officer of Amazon.com said in a statement.
The company anticipates a strong second quarter as well, which will be capped off by the release of "Harry Potter and the Order of the Phoenix," the fifth book in the fantasy series written by J.K. Rowling. Consumers are able to place advance orders for the book through Amazon, and for an additional fee can receive it on June 21, the first day it will be available.
