E-commerce giant reports its first loss since 2003
US-based e-commerce giant Amazon.com said its third-quarter net loss was US$274 million (RM832 million) and this is the first loss reported in more than 8 years. The last loss was reported in third quarter of 2003, Reuters reported.
The loss is suspected due to Amazon spends heavily in technology, digital content and infrastructure. Amazon is spending on new distribution warehouses and technology to support its cloud-computing businesses, Amazon Web Services. Hundred millions of dollar was reported to spend on digital content to sell through Amazon’s Kindle tablets and e-readers.
The increase in competition from other online retailers such as Wal-Mart, Target Corp, Best Buy and eBay also affecting the online sales of Amazon.
by Terry Brown