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While other sectors have not found a clear way to use Internet as an accurate tool to reinforce their market (like Journalism, for example), e-commerce has established itself on Internet as an unstoppable business model that generates amazing incomes. Amazon can show off about it: its sales grown 27% in 2012.
The Seattle-based company, completely focused on e-commerce and cloud computing services, has published its 2012 favourable results which reflects that it has turned over $61.010 million during the last year. Comparing with 2011 final numbers, the company has earned $12.010 million more.
Q4 has been the best period. Electronic devices have become one of the most wanted products at an affordable price. So the Christmas purchases shot up the sales of the company specially the eBooks ones that have grown a 70% although the company has not given specific numbers. Now we are confirming the transition that we have been waiting for. After five years, actually eBooks are a millionaire ranking for us, growing faster and faster,
stated Amazon’s founder and CEO Jeff Bezos.
Their Kindle eBooks and tablets were the best selling products but other innovations of the company helped to rise the shares a 45% in 2012, as the launched of the AutoRip service (it offers Amazon’s free song versions), the Kindle Hobbies Unlimited (it gathers family leisure contents) or the opening of different warehouses and Kindle stores throughout Europe and emerging countries, broaden its market horizons.
Payment of taxes: a risk to confront
But some advices and criticism have come out at the same time as the publication of the results report.
Meanwhile some Spanish media experts point out the unchanging strategy of Amazon of selling out of profits –even while the earnings have risen, the losses have been added up in $39 million– other voices advice about the rising risk related to the invest in new distribution centers and the tax furore.
The Telecoms Correspondent for The Guardian Juliette Garside informs in one article that boost to retailer’s cash mountain after investment in new distribution centres is likely to heighten tax furore
. For her, the reserves are likely to fuel demands for reform of UK tax laws due to the company generates almost the 10% of its revenues in the country but has paid less than $4 million in tax in the last three years.
The world’s largest web retailer manages its operations from Luxemburg to avoid the tax authorities control through different actions. Regarding to the economic and financial crisis, Garside states that Amazon’s savings … could take a hit. The British prime minister David Cameron took to the stage at the Davos summit to call for companies to pay ‘proper taxes’, and the French and American governments are pursuing Amazon directly.
