America's largest online retailer, Amazon.com, is reporting a very good first quarter. Net sales saw a 18% increase to $4.89 billion during the first quarter, the same quarter last year was $4.13 billion. Amazon reports net sales would have grown 25% compared with first quarter 2008, if it excluded the $268 million due to the "unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter."

The company's operating income increased 23% to $244 million, compared with $198 million from the previous year. Again, the impact related to exchange rates saw a huge impact, if the related $32 million were to be excluded the increase would have been 39%.

Amazon's net income increased by 24% to $177 million, compared with net income of $143 million from the same time last year.

“We’re grateful and excited that Kindle sales have exceeded our most optimistic expectations,” said Jeff Bezos, founder and CEO of Amazon.com.

A number of highlights from Amazon's first quarter:

• Kindle 2 eBook reader released
• Kindle App for the iPhone and iPod Touch released via the Apple App Store
• Amazon App for BlackBerry released
• Amazon MP3 music service launched in Germany
• Amazon Video Games Trade-In service beta launched
• Items shipped on behalf of sellers who utilized Fulfillment by Amazon increased by more than 300% from the prior year.