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U.S. e-commerce sales somehow rose 53% Y/Y for the week of Dec. 17-21, says comScore - the...

U.S. e-commerce sales somehow rose 53% Y/Y for the week of Dec. 17-21, says comScore - the research firm attributes this surge to free shipping offers, extended promotions, and retailer promises to have items delivered by Christmas. As a result, sales for the full holiday season are now up 16% Y/Y, better than the 13% reported last week, though still slightly below a prior forecast of 17%. Amazon's (AMZN) Q4 should benefit from the sales boost, but did the company sacrifice margins along the way?
Comments (9)
  • OSTK "will make it up in volume"
    24 Dec 2012, 02:07 PM Reply Like
  • Does anyone know what % of total retail holiday sales online now accounts for?
    24 Dec 2012, 02:07 PM Reply Like
  • The Census Bureau estimated e-commerce was 5.6% of Q4 2011 retail sales. It should probably be around 6% this year.

     

    http://1.usa.gov/12Lc9JI
    24 Dec 2012, 03:05 PM Reply Like
  • Eric -- thank you.
    24 Dec 2012, 05:56 PM Reply Like
  • At least on toys, amzn is killing toys R us on pricing. Can't be good for their margins
    24 Dec 2012, 04:01 PM Reply Like
  • (AMZN) always made it on quantity, not prices. I don't think they care about margin. They'll be fine.
    24 Dec 2012, 08:53 PM Reply Like
  • <<<I don't think they care about margin.>>>

     

    I guess if the company had a monopoly of some sorts, margin in the short run would not matter. But I don't see the monopoly here. I just see a company that has created a model to make around zero profit (plus or minus) which I do not see the market accepting forever.

     

    Have a nice holiday.
    24 Dec 2012, 09:09 PM Reply Like
  • (AMZN) is the (WMT) of the internet. Where else do you buy online goods? (AMZN) is probably the first place most people go if they want to buy things online.
    24 Dec 2012, 10:35 PM Reply Like
  • Yet amazingly, WMT trades around a P/E of 15 and AMZN is valued orders of magnitude above that
    24 Dec 2012, 10:48 PM Reply Like
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