July 6, 2005

Amazon doing great after ten years — except for one little-bitty problem . . .

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July 16 will mark the 10th anniversary of Amazon.com, and an Associated Press wire report by Elizabeth Gillespie marks the occasion with a laudatory overview of the company including an interview with founder Jeff Bezos. He says he never planned to sell anything but books. However, he says, “We actually started to get e-mails from customers saying, ‘Would you consider selling music, because I’d really like to buy music this way, and DVDs, and electronics?'” Today, as Gillespie notes, “the man who has grown accustomed to being hailed the king of Internet commerce runs a global powerhouse that did nearly $7 billion in sales last year, dealing in everything from banjo cases to wild boar baby back ribs.” Gillespie’s report does, however, include one rather large mistake: she reports that “it took several years to post a profit.” While Amazon has claimed a “pro-forma” profit — an accounting method that does not include debt beyond the reporting period — it has not posted a profit in its ten years of existence.

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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