Tuesday, 26 April 2011

10a the BIG question...

Explain how it can be that Amazon's profits have fallen but their sales have risen. What could have caused this?

25 comments:

  1. they are selling their products cheapers so more people would buy them so they sell they products quicker...!!!.

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  2. Amazon have spent a lot of money as a company investing in different business ideas, one of which is their highly succesful new product; the "Amazon Kindle". Amazon say that this is another of their "investment years" and expect that these investments will start to pay off around 4th quarter.

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  3. New products developed and released by Amazon have meant that they have spent more than they have made, the profit which has come out at negative shouldn't be too much of a problem for them, if their product are as popular as they seem, they should counter this loss very soon.

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  4. The rise in sales and fall in profits is because they Launched many new products

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  5. New products developed and released by amazon have meant that they have spent more than they have made, the profits which has come out at negative shouldnt be too much of a problem.

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  6. They are selling their products too cheap. Even though they are selling a lot, the money for their product is not getting them high profit.

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  7. the reason that their profits have fallen but their sales have rised is that they have recently launched a lot of new products that cost a lot to develop. Amazon have said that this will be an investment year meaning that they will spend money making their business better to gain more profit in the future.

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  8. Russell Golding27 April 2011 at 02:03

    They are selling their products too cheaply...?

    Yours Sincerley

    Russell Golding

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  9. becuase amazon have created new products it has lead to them spending more than they have made, they should get out of this problm very quickly with the sales of their new products.

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  10. Daniel Sullivan27 April 2011 at 02:04

    A reason why there profits have fallen but main sales have rised is due to the fact they have been releasing a lot of new products onto the market, these products cost to develope and then to release them onto the market. Amazon as a business are going to try to invest and delelope ideas to maximise profits in the future.

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  11. Amazon's profits have fallen because of the new products they are producing which cost more to make then the other products. They have a rise in sales as more people want to buy the products, but they keep making new ones.

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  12. This is because Amazon have been investing in developing new products, features for these products and services such as the Kindle e-book readers and the e-book store launched in Germany. More people have been purchasing these products but it will take longer to earn the money back spent on developing them.

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  13. the fall in profits could be from amazon investing on new business as they spent a lot of money investing into it.

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  14. Amazon's profit have fallen because they are selling the product to cheap.

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  15. they are selling the pruduct cheap so they are not making high profit

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  16. charlie marshall27 April 2011 at 02:05

    they lost money investing in a company and also a new products. this cost them more than the amount of money they made in the rise of sales.

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  17. Amazons profits have fallen because they are making alot of new products which cost alot to make and they are selling them at a cheaper price which means they are not making any profit.

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  18. This is being caused by Amazon spending money on lauching a number of new products into the market, this includes new software from the Amazon kindle e-book reader. Over time though they will gain the money back from selling their new products.

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  19. they are selling products to cheap

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  20. amazon's products are falling because they're increase in sales means that the products aren't selling for the amount they should be, instead they are being sold to cheap.

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  21. it is because they have invested in new products such as the kindle.

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  22. kiernan pollard27 April 2011 at 02:07

    the cause of what is happening to Amazon is that they are lauching a lot of new products at the this time into the market like the software for there product the e-book reader that they have this costs money meaning they are not getting as much profit they would be getting if they had not spent the money on lauching the products but they may get some of the money back when people buy there new product giving them the profit back.

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  23. amazon have made theyre product so cheap that that theyre profits have fallen, which therfor means that the product is not selling for the ammount it should be going for

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  24. they are selling there product cheap so every one buys it and they make profit.

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