It’s been five years since Amazon last posted a quarterly loss – but the company confirmed that it made a $274 million loss in the last quarter due to a confluence of factors.
A Reuters article explained that the underlying factors behind the loss were the giant internet retailers impairment charge from its investment in LivingSocial. However, this only part explained the loss – other influences included the economic slowdown in Europe combined with a rise in big brand competition as traditionally offline companies invest in their web presence to claw back market share. Finally, the company also spent heavily on shipping and warehouses – rising to $1.51 billion (from $1.12 billion a year ago).