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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.05+2.9%Jan 5 3:59 PM EST

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To: Bill Harmond who wrote (137936)1/26/2002 4:00:55 PM
From: Glenn D. Rudolph   of 164684
 
"Now Amazon puts less emphasis on expanding its own electronics sales and is counting for growth on deals to carry merchandise offered by established companies, as it does for Toys "R" Us, Target and Circuit City.

But the discounting strategy is even more problematic here. These companies have set pricing strategies and have no interest in undercutting their existing stores with cheaper online sales.

It is telling, for example, that neither Target nor Toys "R" Us agreed to participate in Amazon's newest discounting initiative — offering free shipping for orders over $99.

Toys "R" Us, a spokeswoman says, sees free shipping as a tactical promotion to use sometimes. But it is hardly necessary year round."

Bill,

You should read the balance of this.

nytimes.com

I agree about the shipping. Amazon is showing their lack of retailing experience again.
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