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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Skeeter Bug who wrote (119168)3/3/2001 6:13:59 PM
From: Alomex  Read Replies (1) | Respond to of 164684
 
i'll bet you didn't factor in a slower growth rate due to higher prices.

I used a year over year Q4 growth rate of 20%, down from 45% this year...



To: Skeeter Bug who wrote (119168)3/3/2001 10:42:05 PM
From: Glenn D. Rudolph  Respond to of 164684
 
<i.al, i'll bet you didn't factor in a slower growth rate due to higher prices. amzn raises prices, they lose customers. it's that simple. why don't they do away with the free shipping on $100 order? we all know why. they don't want to lose the business.


Skeeter,

I am bad by repeating myself but Amazon made a huge error in their marketing strategy here. The free shipping promotion has gone on way too long. That offer is now considered by every Amazon customer as the normal state of affairs. They will not buy without the free shipping and will only come back when free shipping is again available.

This marketing is called "self cornering." That is a real term. Amazon has cornered themsleves. They trained their customers to expect the free shipping. Sears went though this issue for two decades when they would rotate what was on "sale." Nothing would ever sell at regular price again. Sears has worked out of it but there was a lot of pain experienced in doing so. Those were the years Sears sold the Sear's Towers to raise some cash.

Glenn