The world’s largest online retailer Amazon.com announced that sales from its North American sites jumped nearly 45% to $5.47 billion in the first quarter of 2011, with global sales totaling $9.86 billion.
The US and Canada saw the strongest growth of all Amazon sites, with electronic goods and merchandise sales totaling $3.3 billion, a 63% increase compared to the same period last year. Media sales, particularly books and DVDs, increased by 18% to $1.89 billion.
International sites in the United Kingdom, Germany, France, Italy, China and Japan generated $4.39 billion in sales in Q1, a 31% improvement on 2010.
Amazon predicted revenue would grow at a rate of 35% to 45% in the second quarter of 2011, but global net income for Q1 dropped to $201 million, 33% less than last year.
13 New Distribution Centers
The fall in net income was partly due to $23 million in share-based employee payments and the construction of an additional 13 distribution centers around the world, according to Chief Financial Officer Thomas Szkutak.
Amazon also spent 63% more on marketing compared to last year, with a total price tag of $327 million. Investment in order fulfillment and new technologies also increased by 57% and 58% respectively.
Key Players - US Online Retail Leaders
Key Statistics - US Online Retail Market (source: yStats)
- E-commerce revenue in the US is expected to top $170 billion in 2011.
- Amazon is the biggest online retailer in the US with $24 billion in revenue for 2009.
- In 2010, 58% of online shoppers were female, of whom 70% made most purchases in the apparel and jewelry category.