A hike in sales of the Kindle electronic reader has spurred Amazon on to better-than-expected first-quarter profits
The AMZN - news) " title="More on Amazon">online retailer posted a 24% rise in first-quarter net income to just over £120m as lowered prices lured more shoppers online.
Shares in the firm, which sells everything from DVDs to car parts, rose more than 2% in after-hours trading - despite a weakened outlook for second-quarter earnings.
The firm made a 21% sales gain in North America alone as customers opted against a trip to the shops in favour of browsing for free online.
Chief executive Jeff Bezos said sales of the company's Kindle had "exceeded our most optimistic expectations".
The Kindle, sales of which are not disclosed, has garnered huge attention but it is not known exactly how much profit it generates.
But analyst Hamed Khorsand of BWS Financial said: "The important takeaway from Kindle is not only is it a revenue generator, but it's also incremental revenues from e-books being sold."
Lower prices and promotions have helped Amazon fight the recession, along with an increase in the selection of products on sale.
The company also credits the boost to an increase in independent sellers who use the site as a marketplace.
There has been a 300% growth in items sold by these traders but shipped by Amazon, which earns a cut of the transaction.
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