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Amazon's strong sales buck trend

Posted Dec 29 2008, 01:00 PM by Minyanville
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As data pours in from the holiday shopping season, stories of tight purse strings and a general rejection of the extravagant abound.

But bucking the trend, Amazon.com reported strong sales and record buying activity. The world's biggest online retailer called the otherwise bleak environment it's "best ever." Still, online sales are expected to slow from the previous year for the first time ever.

On December 15, according to the Wall Street Journal, Amazon's customers snapped up items at a clip of nearly 73 per second, or 6.3 million for the day. That's the busiest the site has ever been.

Leading the record-breaking sales were Nintendo's Wii video game consul, Samsung's 52-inch HD television and Apple's 8-gigabyte iPod Touch. In addition, Acer Inc.'s Aspire One netbook attracted buyers looking for cheap access to the Internet. The tiny laptop, with a screen that measures just 8.9 inches, sells for less than $500.

Amazon's strong results are in sharp contrast to most brick-and-mortar retailers, which rang up weak sales despite aggressive discounting. Consumers, hunting for bargains and reticent to brave harsh winter weather across much of the country, shunned malls, preferring instead to shop from the comfort of home.

The site's relative success is evidence that, even during recession, the cream of the corporate crop can still thrive. Economic activity doesn't grind to a halt just because Apocolyptic headlines seem to be without end.

Instead, downturns weed out the weak hands, building a stronger foundation for future growth.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Andrew Jeffery.

Related reading:

The Grass is Greener in Retail

A Calmer 2009?

Have Google, Apple and Amazon hit bottom?

Ticker Shock: GMAC Scores a Bailout; Amazon Puts Other Retailers To Shame

Comments

 

I am one of those who used Amazon this Christmas. My main reasons were:

1.  Free shipping

2.  No need to hassle Christmas shopping and parking at the mall

If you plan early enough, you too can have a low-stress holiday!

I have been buying and selling with Amazon for years. I do love the free shipping for purchase over $25.00. No sales tax as well. It's a win-win. They also offer reviews on their items. I always read them before a purchase. Thanks Amazon, you got ebay beat. Maureen P

Sure, the sales number looks good.  However, I am one of those who did buy from Amazon but had to return the items because I actually found a better price.  Yes, Amazon does offer free shipping on most items and typically does not charge tax, so it is an option to consider when purchasing anything whether at brick and mortar stores or other online sites.

It is like getting to be a bit annoying knowning that Amazon is now beginning to charge for returns of products.  This can be annoying to think about as it was one of the great reason that I decide to buy from Amazon.  I can buy something site unseen but know that I have the security to return it without penalty.  In the long terms, I fear that they will eventual charge for restocking fees, this fee, and that fees-- it will eventually fee us to death.  I guess until then it is still good to buy from Amazon.  I do hope that it will heed this warning and stop it with the ticky-tack fees.  It is the kind of things that eventually leaves me with a bad taste in the mouth that I won't consider going back-- even if it is an online 24/7 store.  

I ordered some classic movies on DVD for a Christmas gift and they can't be viewed in the USA, only the UK.  Can anyone tell me how I can get them to exchange them for the right ones?     Thanks, Clara

Due to the ease of Amazon.com wishlists and the fact that they seem to sell everything, my extended family has been using Amazon.com for our holiday shopping for several years. My purchases this year included designer clothes, auto parts, collectible coins, PC accessories, bath-sets, movies, CD's and video games, all purchased while in my pajamas.

I think that we could generate some extra money for the economy if we charged taxes based on the zip code of the shipping address.  I heard a while back (over a year ago) that the goverment was going to start to regulate the taxes on internet sales.  Anyone have any ideas or know what is going on with it? I work retail and its the most annoying thing to deal with. Customers assume that since they can avoid paying sales tax by buying online that retail stores should do the same thing. I think people should pay sales tax, thats probably why we are in recession.

Just a thought

Sure Amazon.com did good for the holidays.  I placed an order that was charged to my debit account and the same items to my amex account. I called them within an hour of transaction and was assured that the debit transaction was cancelled. Wrong.  Now they are trying to collect on the debit order after already being paid for the items through amex. $800+ dollars later in fees, charges and duplicate merchandise their affiliate TRS is trying to collect on frivolous charges and have reported me to a credit reporting agency.  Still no one has contacted me to resolve this after a month of emails and phone calls to their

(in my opinion)pathetic, uncaring customer service.  

Online is the way to go when you plan, budget and compile a precise list. Easiest way to stay exactly in your budget avoid the hassle of the malls nasty customers and retail clerks and avoid impulse items. I got great gifts exactly what I planned for everyone on my list and actually stayed $350 under my budget. All delivered to my door two full weeks before Christmas. Stress free!!!

We have yet to be 'skunked' with any Amazon.com or Amazon Marketplace purchases.  Not having to deal with any of the issues already mentioned are great.  The prices are excellent as well.  Some of the Marketplace items don't arrive in a timely manner but eventually they DO arrive.  We have learned that making copies of EVERYTHING ordered on-line is imperative in case a dispute occurs.  It sounds a teensy bit anal but...........it has saved the day more than once.  If you have to talk to anybody, the order number and all pertinent information is right in front of you.  Be ready with your CC card number, etc. as well......then go to war!!! <g> It works every time.  Still and all, we've had better luck (MUCH better) than with E-Bay.

i like amazon...reviews are helpful,you can price shop,easy user interface...brick/mortar stores are a thing of the past...in my book!

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