Amazon Posts Bigger Than Expected Q2 Loss

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It looks like the strain of multiple product launches took a toll on Amazon this quarter.

The company, which launched its first smartphone, the Amazon Fire phone, a few weeks ago, posted a loss of 27 cents per share on revenue of $19.34 billion in the second quarter. Analysts had been expecting on average a loss of 15 cents per share on $19.34 billion in revenue.
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Multiple crappy products launches. They're too busy to justify Amazon Prime that everyone else has free shipping. I wanted to buy a mattress and they added on $50+ for shipping and taxes. Walmart.com was free.
 
Amazon is basically the Walmart of the web but they act like they're somehow more. I never understood why they can't make profit and forget about their more zanier ideas.
 
Everything I want to buy from Amazon seems to be an add-on item these days.
 
Almost a double than expect loss, not too good. I love Amazon but they are simply in a mode where they are throwing money at something to see what sticks and have no strategy. They are going to have to pick and choose what they want to do if they continue to lose money.
 
Strange. I like Amazon, but then again......I live in the middle of nowhere. I literally have drive 100+ miles to pick up most of what I order on Amazon in a brick and mortar store.
 
the should stick with what they are good at. This cell phone release In my opinion has backfired, especially with the lower specs compared to whats out there on the market. Too many things at one thing the need to focus and get a plan.
 
Seemed like when I had Prime, the only Prime movies I wanted to see still had a rental fee, and most of the stuff I bought didn't fall under Prime shipping anyways. To make things worse, the three things I actually bought that were covered under Prime shipping weren't at my "local fulfillment center" so they wound up taking 2 weeks to get here anyways.
No way I was going to keep paying (or should I say start paying?) for a service like that, I canceled with a week left in the trial!
 
What the hell do guys buy? I don't think I've ever bought anything from amazon that wasn't free shipping.
 
No big deal. I buy my knick knacks on ebay anyway.
But I wonder if amazon is too big to fail.
 
They'll just have to get rid of free shipping for orders over a certain price and increase the cost of Prime so the freeloaders on it aren't getting so many extras they don't deserve to begin with.
 
bexamous said:
What the hell do guys buy? I don't think I've ever bought anything from amazon that wasn't free shipping.
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Just everyday items, like Japanese size novelty condoms that look like you're wearing a baby squid, and individual toothpicks that were labeled as add-on items for no good reason.
 
CreepyUncleGoogle said:
They'll just have to get rid of free shipping for orders over a certain price and increase the cost of Prime so the freeloaders on it aren't getting so many extras they don't deserve to begin with.
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Just the opposite. Bigger price tag items SHOULD come with free shipping as they have a higher margin.

Things like kitty liter were really cheap, but it cost more to ship kitty liter then the total purchase price.

Sometimes when I see free shipping with Prime, I'll go check the item price + shipping to compare. Sometimes the free shipping with Prime comes out more expensive then item price + shipping. (I guess not all vendors participate in Prime)
 
Since Amazon started charging sales tax in my state earlier this year, my use of Amazon has plummeted. Just used Newegg earlier this week to buy a monitor for my son to use in college.. got it with free shipping AND no sales tax.
 
Hypx said:
I never understood why they can't make profit and forget about their more zanier ideas.
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Diversification is important to any business. If they simply focus on making a profit they go under when the industry leaves them behind.
 
Insula Gilliganis said:
Since Amazon started charging sales tax in my state earlier this year, my use of Amazon has plummeted. Just used Newegg earlier this week to buy a monitor for my son to use in college.. got it with free shipping AND no sales tax.
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The good old tax evasion makes things cheaper reasoning. I've found if I just outright steal the items at Walmart I can get them even cheaper!
 
bexamous said:
The good old tax evasion makes things cheaper reasoning. I've found if I just outright steal the items at Walmart I can get them even cheaper!
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This is just petty tax evasion. No big deal.

We're not talking income tax evasion.
 
Well they can knock some of that down from me refusing to pay for Prime at it's current price these days. Everything I buy now qualifies for free shipping if over $35 and/or has free shipping anyway. Well as long as it's not a stupid "add-on" item. I hate those.

I even cancelled my subscribe and save items that I once got every 1 - 2 months simply because they kept removing the items I had delivered from subscribe and save. I got tired of trying to find something equivalent to replace it.

I went from ~8 order total in 2012, to ~120 orders in 2013 to now I am right around 30 or so orders this year. Nearly half of those were from the first couple months of the year when I still had my prime membership and subscribe and save items delivered. Now I make maybe one order a week or less.
 
Their market strategy is not sustainable. They need to slow down to minimize their losses.
 
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