Amazon's profit margin rises as new businesses grow

Amazon.com Inc reported quarterly results on Thursday that showed the growth of new businesses is boosting the profit margins of the world's largest Internet retailer.

The company's product revenue

The company's product revenue, which includes its traditional online retail business, grew 25 per cent to US$10.79 billion.

Services revenue, which includes its online marketplace for third-party merchants and its cloud computing business Amazon Web Services, surged 57 per cent to US$2.04 billion.

These newer businesses are more profitable than Amazon's retail operations, so as they become a larger part of the company, overall profit margins grow.