April 19, 2002, 12:00 AM

Amazon’s revenue grows 13%, while losses narrow by 60%

Amazon.com’s revenue grew 13% last year to $3.122 billion from $2.761 billion. Net loss narrowed to $567 million from $1.41 billion. At year`s end, Amazon had an accumulated deficit of $2.86 billion. Fulfillment costs equal 12% of sales down from 14%.

 

Amazon.com’s revenue grew 13% last year to $3.122 billion from $2.761 billion, the company reported today. Net loss narrowed to $567 million from $1.41 billion. At end of the year, Amazon had an accumulated deficit of $2.86 billion.

Revenue in Amazon’s biggest division and the one it is best known for--books--was down slightly last year from the year earlier, $1.69 billion vs. $1.7 billion the year before. That reflects, in part, Amazon’s decision to discount books over $20.

Revenue in its electronics division was $547 million, up 13% from $484 million the year before. International revenue grew 73% to $661 million from $381 million, while service revenue, from commissions on sales at Amazon zShops, Auctions and other partnerships, was $225 million, up 13.6% from $198 million the year before.

Fulfillment costs of $374 million were down 11% from $415 million the year before and represented 12% of net sales vs. 15% a year earlier. Amazon says the decline was the result of improvements in productivity, the increase in units fulfilled helping to leverage its fixed-cost base, a decline in customer service contacts resulting from improvements in customer self-service features on the web sites, improved balancing of inventory throughout its network that resulted in fewer split shipments, the closure of a fulfillment and customer service centers.

Marketing expenses, minus co-operative marketing reimbursements, were $138 million last year, 4% of sales, vs. $180 million, 7%, the year before. Amazon says it served 25 million customers in 2001 up 25% from 20 million the year before. Inventory turns increased to 16 in 2001 from 12 in 2000.

 

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