'Phoenix' Sparks Amazon.com Gains

Sales in Amazon.com's North America media unit rose 13.6%, to $499 million, for the second quarter ended June 30. The media unit is home to the e-tailer's book, music, software, magazine and video game offerings.

The only hard news on book sales in the quarter was that Amazon sold 1.4 million copies of Harry Potter and the Order of the Phoenix worldwide in the period. Because of Amazon's deep discounting of the title, the company only broke about even on Phoenix and it estimated it gave up $18 million in sales; the benefit was that Amazon garnered 250,000 new customers through the offering.

Sales for all of Amazon increased far faster than in the North America media division, rising 37%, to $1.1 billion, and the net loss was cut to $43 million from $94 million. The company's international operations grew much more quickly than its North America business, increasing 81%. To keep up the sales momentum abroad, Amazon said it would lower the minimum for free shipping in the U.K. from £39 to £25.

Amazon also reported that unit growth outpaced sales gains in the quarter, increasing at 42%, helped no doubt by the sale of used products, which accounted for 20% of unit sales.

The company had no comment on a report in the July 21 New York Times that it is creating a searchable archive of nonfiction titles.

The day after Amazon's earnings announcement, Barnes & Noble.com notified its customers that it is offering free freight on orders of $25. The previous requirement for free shipping was an order of two items.