Online retailer Amazon has reported third-quarter revenue 24% higher at $17.1 billion, beating analysts’ expectations.
Jeff Bezos, who founded the company in 1994, is spending Amazon's cash to build warehouses closer to customers, a strategy meant to reduce shipping costs over time.
Fulfillment expenses increased 35% to $2.03 billion, while technology and content expenses climbed 45% to $1.73 billion.
Sales by third parties on the site, which bring in higher margins, made up 40% of items sold, compared with 41% in the third quarter of last year.
Amazon unveiled its third generation of Kindle Fire tablets last month, seeking to set itself apart in a crowded market. While Apple makes money each time an iPad is sold, Amazon offers its devices at cost and aims to profit from sales of digital movies, books and music.