Amazon ought to keep this format on file for next year after Christmas for their bankruptcy liquidation sale. I doubt they will have many good programmers left:
"December 20, 2000
Personalized E-Mail
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Amazon.com Opens 'Outlet Store' To Sell, Sell, Sell
By BRIAN STEINBERG
Of DOW JONES NEWSWIRES
NEW YORK -- It's beginning to look a lot like the days after Christmas at online retailer Amazon.com Inc. (AMZN).
The Seattle company, famous for aggregating a group of online "stores" that vend everything from books, music and movies to home furnishings and electronic goods over the Internet, is getting ready to sell, sell, sell with the opening of an online "outlet store" on Dec. 28.
Amazon customers received an e-mail in the wee hours of Wednesday morning heralding the opening of what the company calls the "Amazon.com Outlet." The electronic letter, signed by David Risher, an Amazon senior vice president, uses language reminiscent of TV ads from local retailers like New York City's Crazy Eddie chain, which used to remind consumers that the operation's low prices were "'in-saaaane!" As such, the Amazon initiative - obviously designed to drum up sales and, perhaps, boost revenue - prompts questions over how the company is faring during the days leading up to Christmas, its most important selling season.
"As someone who's purchased great bargains from us in the past, how would you like an exclusive sneak preview of our new Amazon.com Outlet? (Don't answer yet there's more!)," notes Risher's e-letter.
"How do blowouts of up to 50% off toys and electronics and up to 60% off kitchen items sound?" the letter asks. It also offers "books for less than 5 bucks, CDs for less than $7," and a 10% discount on purchases of $50 or more. And it contains plenty of the argot of the hard-sell, with lines any late-night TV watcher has heard ad infinitum: "Now, how much would you pay?" and "Hurry, your exclusive access to these great deals won't last long."
Great 'Deal$'
An online preview of the outlet store tells customers that they can find "Great deal$ everyday!" A toy featuring Sesame Street's "Ernie" character is selling for $4.99, down 62%, or $8, Amazon says, from $12.99. The item is listed under the heading "Going Fast!" Meanwhile, a Sharp portable DVD-video player lists for $899.88, a savings of $599.12, or 40%, off its list price of $1,499, according to the Web site. Amazon offers the gadget under a "Super Savings!" heading.
The site will function as a portal of sorts "to all the bargains that we have across our existing stores," said Curt Anderson, the senior manager of the infant operation. He declined to reveal revenue expectations for the site, or describe what business goals Amazon has for it. But customers will definitely encounter a "thrill of the hunt" feeling when surfing, he said.
"The overall feeling about the shopping environment is that the deals are going quick," Anderson said. "Limited quantities are on hand. Get them while they're hot."
The aggressive sales chatter comes as Wall Street grows increasingly anxious over Amazon's ability to generate sales during this crucial period. Several analysts have said they expect the online retailer to meet its sales goals, stated as being between approximately $950 million and $1.05 billion. And yet, the stock has dropped precipitously in recent days as investors fret over the relative health of retailers and online concerns. The overall market has also reacted to Tuesday's announcement by the Federal Reserve that it wouldn't lower short-term interest rates.
Analysts remain somewhat confident in Amazon's prospects. Current market evidence shows "revenue is OK," says Mark Rowen, an Internet analyst with Prudential Securities Inc. in New York, "but I suspect that they're getting squeezed on margins."
An online outlet store would mark a natural evolution for Amazon, said Rowen, who in the past has predicted that the company would open physical retail operations to rid itself of overstocked goods. "Every retailer needs an outlet for merchandise that doesn't sell, and Amazon is no different," he said.
Still, Amazon might want to be careful with its marketing efforts for the new operation, said James Gregory, chief executive of Corporate Branding, a branding consultancy based in Stamford, Conn. "What they don't want to do is position this in such a way that it will harm the parent brand, and that can happen," he said. The Amazon brand, he added, "is all about convenience." Anything that departs from that concept, he said, "would really diminish the whole concept of what they're really trying to do."
In recent trading, shares of Amazon fell $1.50 to $16.75, a drop of 8.2% from Tuesday's close at $18.25 a share. Volume was 11.8 million shares, while average daily volume is 9 million.
-By Brian Steinberg, Dow Jones Newswires; 201-938-5218; Brian.Steinberg@dowjones.com
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