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Amazon goodies
Amazon goodies

Online shoppers promising Amazon a happy Christmas

23 Oct 2009


Amazon's UK arm today predicted a very happy Christmas as Brits shun the High Street to buy their presents online.

“We are expecting a brilliant fourth quarter,” the online retailer's UK managing director Brian McBride said. “This year will be the first time shoppers can do all their present shopping with us at Amazon — from books and DVDs to electronics and clothes.”

It is in sharp contrast to the prospects for traditional stores, with Sir Philip Green, the billionaire owner of Topshop and Bhs, warning earlier this week that the High Street faces a tough festive season.

McBride said that Amazon is “delighted” with its UK sales in the third quarter. Dan Brown's latest novel, The Lost Symbol, has been the best seller on the site, while customers pre-ordering Microsoft's Windows 7 software have also given a boost to sales.

International sales — which includes the UK as well as its German, Japanese, French and Chinese sites — shot up by a third between July and September to $2.61 billion (£1.5 billion). Overseas sales now account for almost half of the company's income.

But Amazon's move into electronics has also proved particularly lucrative, with its Kindle book reader the star seller globally.

Shipping of the e-reader from its US store to Britain only started last week so sales are not included in these numbers, but McBride said Amazon is “very pleased” with early demand. Sales of the gadget have been so strong that it has cut the price from $279 to $259.

Overall, sales of electronics jumped by 44% in the quarter. McBride explained: “People are still buying flat-screen TVs and Blu-ray DVD players. They aren't going out as much so they want the best technology to enjoy at home.”

The world's largest online retailer has avoided being hit by the postal strike, turning to Royal Mail's rivals to avoid disruption to its deliveries.

McBride said: “Royal Mail is just one of our carriers. Obviously we are disappointed by the strikes, but our customers are still getting their goods on time.”

He added that it was too early to consider switching away from Royal Mail.

The Seattle-based company smashed forecasts, with a 68% jump in profits to $199 million for the last three months.

Reader views (2)

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Wonderful! Their sales will be up but how will they deliver them to the customers with the postal strike?

- Jon Vickers, S.C.USA, 23/10/2009 14:30
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Amazon deserve all the sales they get they're an excellent company in terms of customer service, competitive pricing and product range.

- Squiz, Islington, 23/10/2009 13:05
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