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Last Updated: Tuesday, 24 July 2007, 22:39 GMT 23:39 UK
Amazon sees profit treble to $78m
Amazon.com webpage
Third-party vendors selling through Amazon is key to the firm
Strong sales of books, music and electronic devices helped online retailer Amazon more than triple its profits in the three months to June.

Profits grew to $78m (37.8m) on sales which were up 35% to $2.88bn - better than analysts had predicted.

It added that the volume of items which were sold through its site by third-party vendors had increased to 30% of total unit sales.

Amazon shares soared by 11.3% in after-hours trading.

The firm added that there had been an increase in the number of people who had signed up to the free postage scheme it offers to its US customers.

Providing unlimited postage for a one-off fee of $79 a year, the offer eats into Amazon's bottom line but is seen as a long-term strategy.

Globally, the company took more than two million pre-orders for the final Harry Potter book, although is selling the JK Rowling tome at a hefty discount.

It has also announced plans to launch a digital music store that will allow customers to download music without any digital copyright protection.


SEE ALSO
Amazon to sell unprotected music
16 May 07 |  Business
IBM and Amazon settle patents row
08 May 07 |  Business
Good start to the year for Amazon
25 Apr 07 |  Business
EMI takes locks off music tracks
02 Apr 07 |  Technology
Investment dents Amazon profits
01 Feb 07 |  Business
Falling profit margins hit Amazon
25 Oct 06 |  Business

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