Kindle Fire named the best-selling product of 2012.
Amazon's net sales hit $21.27 billion for the fourth quarter ending December 31st 2012, a 22 per cent growth from $17.43bn in 2011. Additionally, net sales for the full year increased by 27 per cent to 61.09bn, up from $48.08bn in 2011.
The online retailer says the Kindle Fire was the most popular item for the second year running, while the Kindle Fire HD was ranked as its best-selling, most gifted, and most wished for product worldwide.
In fact, the HD, Fire, Paperwhite, and Kindle occupied the top four spots since launch.
Jeff Bezos, founder and CEO of Amazon, said: "We’re now seeing the transition we’ve been expecting. After five years, e-books is a multi-billion dollar category for us and growing fast – up approximately 70 per cent last year.
"In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We're excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection."
Meanwhile, the firm's digital media has grown considerably to hit over 23m movies, TV shows, songs, magazine, e-books, audiobooks, apps and games in 2012, up from 19m in 2011.
The firm predicts that Q1 2013 net sales will be between $15 and $16.6 billion, rising between 14 and 26 per cent compared with Q1 2012.