Amazon has reported a 24% rise in sales, despite profits falling by nearly a third. The company has blamed investments in inventory, strong promotions, such as free shipping, and investments in new services for the drop in profits.
Despite this fall, Amazon remains upbeat, pointing to the increasing membership of Amazon Prime, which provides two-day shipping on orders at no extra cost to members in exchange for a $79 annual fee.
Chief executive Jeff Bezos said: We look forward to seeing significant sequential improvement in operating leverage (this quarter) even as we continue to invest in many initiatives including new retail categories, seller platforms, web services and digital.
Amazon has increased its inventory of toys and other goods to take advantage of what is hoped to be a record Christmas. The company is stocking a further 125,000 lines in comparison to last year.