July 22, 2010, 5:24 PM

Amazon tops $1 billion in mobile sales in past year

Total sales for Amazon in the second quarter increased 41.3%.

Lead Photo

Jeff Bezos, Amazon CEO

Amazon.com keeps on cranking out the conventional e-commerce sales—and now it’s also making the register ring through its mobile channel.

In its first-ever disclosure of mobile commerce revenue, Amazon, in its just-released second quarter earnings release, says worldwide mobile commerce sales in the past year topped $1 billion.

“In the last 12 months customers around the world have ordered more than $1 billion of products from Amazon using a mobile device,” says Amazon.com CEO Jeff Bezos. “The leading mobile commerce device today is the smart phone, but we're excited by the potential of the new category of wireless tablet computers. Over time, tablet computers could become a meaningful additional driver for our business.”

Amazon didn’t say how much of its mobile commerce sales came from owners of Amazon’s Kindle electronic book reader buying e-books. But the world’s biggest online retailer continues to build up its mobile commerce platform. Last October Amazon.com extended its 1-Click checkout experience to its mobile site and offered the application to other online retailers through its Amazon Payments LLC subsidiary.

Also in the second quarter, Amazon, No.1 in the Internet Retailer Top 500 Guide, reported:

  • Net sales were $6.57 billion, a 41.3% increase from $4.65 billion in Q2 2009.
  • North American net sales totaled $3.59 billion, up 46.5% from $2.45 billion in Q2 2009.
  • International net sales totaled $2.97 billion, up 35% from $2.20 billion in Q2 2009.
  • Outside merchants accounted for 32% of Amazon’s unit sales, up 6.7% from 30% in Q2 2009.
  • Operating income grew year over year 69.8% to $270 million from $159 million.
  • Net income grew year over year 45.8% to $207 million from $142 million in Q2 2009.
  • Spending on marketing increased 63.6% to $211 million from $129 million in Q2 2009.
  • Spending on technology and content increased 36.5% to $408 million from $299 million in Q2 2009. 
  • Spending on fulfillment increased 42.3% to $582 million from $409 million in Q2 2009.
  • General and administrative spending rose year over year to $113 million from $77 million, an increase of 46.8%.

For the first six months Amazon reported: 

  • Net sales were $13.69 billion, a 43.5% increase from $9.54 billion in January through June 2009.  
  • North American net sales totaled $7.37 billion, up 46.5% from $5.03 billion in January through June 2009. 
  • International net sales totaled $6.32 billion, up 40.1% from $4.51 billion in January through June 2009.
  • Outside merchants accounted for 31% of Amazon's unit sales, up 3.3% from 30% in January through June 2009.
  • Operating income grew year over year 65.4% to $665 million from $402 million.
  • Net income grew year over year 58.3% to $505 million from $319 million in the first half of 2009.

“We're seeing rapid growth in Kindle, Amazon Web Services, third-party sales and retail,” says Bezos.

Amazon expects net sales in the third quarter to range from $6.90 billion to $7.62 billion and operating income to range from $210 million to $310 million.

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