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

To: Bill Harmond who wrote (146184)	8/26/2002 10:40:21 AM
From: Glenn D. Rudolph	Respond to of 164687

""With Amazon.com's 30% off books over $15 and now Free Super Saver Shipping on orders over $25, there may be reasons to shop in the physical world, but price is not one of them," Jeff Bezos, Amazon's founder and chief executive, said in Monday's prepared statement." Lot's of PR going into this release as is usual and the holiday season is approaching. I would agree with proactive but I can't say I truly have clue about the incentive. "Seems if lowering shipping charges wasn't working then they wouldn't be lowering them even more" This would be the approach of most business but we are talking Amazon here. Most firms that are losing lots of money do not expand to lose additional money but Amazon had done that. They are not typical is all I am saying. Either the $50.00 threshold was not enough to really increase sales or as you said, it worked great so let's lower the threshold more. My opinion is the holiday season will be far more competitive for on-line sales than ever before. Some say it will be less than in prior seasons. The initial star-ups that gave everything away such as Pets.com and many others were actually gone the holiday season of 2000. The players now are more the cream of the crop and yes Amazon included;-) BN has had free shipping for any order that is two items or more this entire year. Interestingly enough, there are almost never two items at BN one would want to buy that would total less than the $25.00. Concept there was similar. Buy.com is playing the free shipping game as well but I do not consider them a long time player. They do not have the brand. I believe Amazon is taking an aggressive approach with the better dual channel outlets that now exist. I do not mean better than Amazon but I mean traditional brands that are on-line but now have more experience on-line. Amazon is looking at the competitive environment and is proactively defending market share. I would tend to agree with this plan for this coming season. Finally, the on-line market to obtain is a lot larger this year than last. I can tell you that from experience. This is not the time to give up any market share. Retailing is a difficult business.