Photo via Images of Money
Photo via Images of Money

When you’re an online retail giant, every second that your website stays inaccessible means thousands of dollars out the virtual door.

For Amazon, that meant about $5 million in losses Monday afternoon when the Seattle company went down for about 40 minutes.

Amazon posted $15.7 billion in revenue last quarter, which breaks down to about $120,000 per minute. Multiply that by the 40 minutes Amazon went down and you get around $4.8 million in lost dollars.

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Comments

  • http://www.djkidhack.com/ Kidhack

    Definitely a drastic over estimation considering how much Amazon makes on all their web services and ebook sales… not to mention ad revenue and sales from Audible.com, dpreview.com, Endless.com, IMDb, LoveFilm, The Book Depository, Zappos.com, Woot, Junglee.com, goodreads.com, and more.. I don’t see them handing out refunds or coupons for the time Amazon.com was down. You may want to check your math again.

    • http://adamgering.com/ Adam Gering

      Plus seasonality, weekly/hourly variance (who shops on a Monday morning?), and the assumption consumers will purchase elsewhere or permanently forgo a purchase rather than simply re-trying later.

      Headline grabbling nonsensical logic; similar to an article that estimated the billions of dollars in U.S. economic loss due to people playing Angry Birds.

      • Amazonymous

        Never mind what Amazon earns from AWS vs. the retail site. To be clear, there’s a number here, it’s big, but Taylor, you could do a lot better job than the totally made up attention grabbing figure. You know, actual reporting…

  • http://www.extendedresults.com/ Patrick Husting

    Isn’t it interesting that Google went down yesterday and now Amazon?

  • bigyaz

    There’s simplistic, and then there’s this ridiculous “estimate” which has so many holes in it it’s hard to know where to begin.

  • anon

    When you go to purchase something from amazon and they are down, do you

    a. Forgo your prime membership benefits and go to another website, sign up, pay shipping, etc…
    b. Try again in a couple of hours.

    I think you would be surprised out many of those “lost” sales come back in a few hours.

    • Eric LeVine

      I tend to agree. Outages suck, but people have them all the time (whether on the server/publisher end or just on their own end with Comcast etc.) So most people would likely just come back a bit later. Likely not too many “lost” sales albeit an (un)healthy burp in traffic, metrics, and so on.

    • seth thomas

      Exactly… in other news, Amazon has explosive sales #’s just after their 40min outage.

  • lol…

    All of the above… and what about margins?
    Amazon’s earnings margins are sub 1%… so even if the moronic math in this article made any sense at all, the REAL loss net of COGS would be a tiny fraction there of.

  • thebudman

    Did they loose it or just not earn it? There is a difference.

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