Amazon could operate at a loss in the first quarter of 2012. REUTERS Inc. (Nasdaq: AMZN), the No. 1 e-retailer, said it would trim costs for its Cloud computing unit known as Amazon Web Services, which operates in 190 countries and serves clients like Netflix (Nasdaq: NFLX).

Basic service from the Seattle-based company is free, so-called Developer service will be $49 a month and Business tier minimum pricing was slashed 75 percent to $100 a month, Amazon said.

Enterprise use of Amazon's Cloud was shaved from a 10 percent flat fee to various tiers ranging from 3 percent to 10 percent. The company said it's offering 28 separate Cloud services across its global computer network,

Shares of Amazon fell 28 cents to $214.45 in Thursday trading.