January 29th, 2013
I always enjoy hunting for nuggets of information when Amazon makes their big announcements to stockholders. Today Amazon’s CEO, Jeff Bezos, revealed something new to think about. Amazon did sell more printed books this December than they had the year. But it was the smallest increase ever in the 17-year history of Amazon — a rise of just 5%.
Meanwhile, Barnes and Noble announced plans to close 200 bookstores over the next 10 years — about one-sixth of all stores. That’s America’s single-largest chain of bookstores — and Borders bookstores already declared bankruptcy in 2011. It’s hard to ignore the fact that there’s not a lot of growth now in the sale of printed books. Today Amazon’s CEO identified this trend as “the transition we’ve been expecting.”
And for comparison, he added that after 5 years, “eBooks is a multi-billion dollar category for us and growing fast – up approximately 70% last year.” After that stunning statistic, there wasn’t much left to say — except a big thank-you to all the people who’ve started buying ebooks from Amazon. “We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.”
Amazon also shared some other interesting bits of trivia about the Kindle. For example, since it was introduced in September, the Kindle Fire HD has continuously remained Amazon’s #1 best-selling, most gifted, and most wished for product “across the millions of items available on Amazon worldwide.” And by the end of the year, Amazon’s worldwide best-seller charts showed that the top four spots had all been claimed by Amazon’s digital readers and tablets — the Kindle Fire HD, the Kindle Fire, the Kindle Paperwhite and the Kindle.
Amazon has always insisted they’re willing to lose a lot of money over the short term, as part of a grand master strategy of growing their customer base over the long-term. So they probably want investors to focus on this number: in just the last three months of 2012, Amazon’s sales totalled $21.27 billion. That’s up more than 22% from the same period a year ago — an increase of $3.84 billon. And Amazon’s sales figure would’ve been even higherif it hadn’t been for fluctuations in the world currency market, which cost Amazon another $178 million.
I don’t know how Wall Street is going to react to Amazon’s numbers, but I’m impressed. For the last three months of 2012, they averaged over $236 million in sales every single day. And as Kindle owners, we’re all part of that number – and a big piece off Amazon’s long-term strategy.
The Kindle makes it even easier to buy things from Amazon — even when you’re lying on your couch!