The emphasis was on unit growth when Amazon.com CEO Jeff Bezos addressed financial analysts last week about the the company's third-quarter operating results—sales rose 33% and the net loss was slashed to $35 million (News, Oct. 28). Bezos said the unit growth in the period "was the highest in two years," which he attributed to lower prices. He noted that in the company's book/music/video segment unit growth outpaced the 17% sales growth recorded by the division.
Much of the unit gain can be traced to an increase in the sales of used items; used products accounted for 23% of North American unit sales in the quarter. Bezos said sales of used books were "very strong," as were electronics. Although the sales of used items has grown rapidly, Bezos said it is impossible to predict how quickly used products will continue to grow, and added that Amazon is "indifferent" to whether a customer buys an item new or used. He said that while it is impossible to definitively determine if sales of used products are cannibalizing sales of new products, data suggest that that is not the case, since customers who buy a used product often buy something new as well.
Bezos said he is looking forward to a good holiday season. "We expect to be more relevant to customers than ever before," Bezos said. Amazon will have nine million books available for sale worldwide in the quarter.
