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28/10/13

Sales Are Colossal, Shares Are Soaring. All Amazon Is Missing Is a Profit

"Amazon will sell many more cookie dropping machines than I will, but even if you buy from me instead of Amazon it will earn a commission on the sale and the shipping,” said Hyo Lee, the owner of Commercial Food. “Now you know why Amazon’s sales have gone from $34 billion in 2010 to $61 billion in 2012.”     
Still, she noted that Amazon was building dozens of warehouses across the country and hiring tens of thousands of employees for them. “It has all these fixed costs now,” she said. “I think they’ll have to start charging more for shipping.” 

Read more at:   http://www.nytimes.com/2013/10/22/technology/sales-are-colossal-shares-are-soaring-all-amazoncom-is-missing-is-a-profit.html?pagewanted=2&_r=1&

Albeit its stock is at record high, Amazon lost money in 2012, and analysts anticipated another loss when the company released its third-quarter results last week. Even though its incredibly soaring sales, the company is missing profits.
 
Thus, do you think that the model of putting down profits for the sake of growth will be able to pay off for the company in the next future? 

And, if not, what could be Amazon possible alternatives in shifting and innovating its business model?"

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