it could be because the kindles that they were making a lot of sales on, were not selling at the price that they cost top produce. so this they may have started the price lower than they should be, so a lot of people buy them and eventually the price rises over time.
Tyanni: this is because they are currently paying out a lot of money to fund their new products. their sales have increased because customers are buying their new products however this has not yet covered the costs of production yet as they are probably using a low promotional price.
amazons profits have fallen but their sales have fallen, this could be becaaause of the costs of making a new product? the research etc, so in the end they dont make a big profit because of the amount they spent on making it :)
Amazon's profits have fallen but their sales have risen is due to the launch of new products. The cost of research, development and advertising would have added to their costs so even if they have sold a lot of products the profit will still be small.
Nick If the cost of production to make the product has increased and so the profit made on each item is less than it was. Also if the price that they sell them at is lower to try and build customer loyalty, they would also see a fall in profit. Lowering prices now will cause more power later.
maybe they had other uses for thier profits because they had too much retained profit used to invest in the business and update the kindle with ebooks gianni
One reason could be because they are selling more products but they are making them cheaper so that customers still buy the product. However this will mean their profit may not be as high.
Because, they have only just finished developing their new product meaning that their costs and expenditure are high and the revenue generated from sales is not great enough to generate a profit. Therefore there sales will have fallen.
amazon's sales had risen because of new software that was introduced, amazon have invested in different business ideas so there profit could of fallen because of that.
Sophie Turner - The rise in sales at the same time as profits falling could be due to the fact that new products were launched meaning that their costs for things such as advertising would stil be quite large. Their sales may be high, but if they are still paying out for these costs then their profit wil not be as great.
Amazon have just entered products into the product life cycle so once that product has gone passed the growth stage and the company starts to make its money back the company will be steady again. TOM!
it could be because the kindles that they were making a lot of sales on, were not selling at the price that they cost top produce. so this they may have started the price lower than they should be, so a lot of people buy them and eventually the price rises over time.
ReplyDeleteTyanni: this is because they are currently paying out a lot of money to fund their new products. their sales have increased because customers are buying their new products however this has not yet covered the costs of production yet as they are probably using a low promotional price.
ReplyDeletehollie brewer
ReplyDeleteamazons profits have fallen but their sales have fallen, this could be becaaause of the costs of making a new product? the research etc, so in the end they dont make a big profit because of the amount they spent on making it :)
Natasha Ewart-Jones
ReplyDeleteAmazon's profits have fallen but their sales have risen is due to the launch of new products. The cost of research, development and advertising would have added to their costs so even if they have sold a lot of products the profit will still be small.
Nick
ReplyDeleteIf the cost of production to make the product has increased and so the profit made on each item is less than it was. Also if the price that they sell them at is lower to try and build customer loyalty, they would also see a fall in profit. Lowering prices now will cause more power later.
Ollie: It could be because the price for the new products are high and the sales are not high enough to break even and make a profit.
ReplyDeletemaybe they had other uses for thier profits because they had too much retained profit used to invest in the business and update the kindle with ebooks
ReplyDeletegianni
It could have been that suppliers have increased their prices or the products cost more to produce and distribute.
ReplyDeleteChris
One reason could be because they are selling more products but they are making them cheaper so that customers still buy the product. However this will mean their profit may not be as high.
ReplyDeleteMatt
because they are selling more products but they are selling at a low cost which isnt high enough to meet there standards.
ReplyDeleteHolly Lawson says:
ReplyDeleteBecause, they have only just finished developing their new product meaning that their costs and expenditure are high and the revenue generated from sales is not great enough to generate a profit. Therefore there sales will have fallen.
amazon's sales had risen because of new software that was introduced, amazon have invested in different business ideas so there profit could of fallen because of that.
ReplyDeletedan gold
Sophie Turner - The rise in sales at the same time as profits falling could be due to the fact that new products were launched meaning that their costs for things such as advertising would stil be quite large. Their sales may be high, but if they are still paying out for these costs then their profit wil not be as great.
ReplyDeleteAmazon have just entered products into the product life cycle so once that product has gone passed the growth stage and the company starts to make its money back the company will be steady again. TOM!
ReplyDeleteamazon are selling a lot because they have a new product however these sales have not yet covered the costs of production for that product.
ReplyDeleteliam