Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: llamaphlegm who wrote (28964)	12/5/1998 11:50:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Net retailer swamped after promotional offer SEATTLE (Reuters) - An online electronics superstore that opened its virtual doors two months ago was virtually shut down by a stampede of customers after announcing a promotional deal on music and movies, the company's founder said Friday. 800.com Inc. was overwhelmed by Internet surfers after the company began selling music and movies late Thursday with an introductory offer of three titles for $1, founder and chief executive officer Greg Drew said. ''People are trying to get in and they just can't get in the front door,'' Drew said. ''The word got around far more than we thought it would in such a short period of time.'' Drew denied the offer was a gimmick intended to attract more traffic than the site reasonably could handle. ''That was not our strategy at all,'' he said. ''I am personally not pleased with how this has turned out.'' In response the company has added a higher-capacity Internet pipeline and was in the process of adding several new computer servers. He said the company expected to fulfill ''tens of thousands'' of orders for the cheap videos and music and hoped to continue the offer through Christmas, although he cautioned it would be available only ''while supplies last.'' The company's money-losing promotional effort is part of an ambitious effort to compete with Internet powerhouse Amazon.com Inc. and other online retailers in the music and movies categories. Drew, a veteran of Hewlett-Packard Co. and other technology companies, founded 800.com Inc. last year, and the company went online in October as a one-stop site for consumer electronics. He said research indicated customers wanted the ability to buy music and videos along with their new equipment. The privately held company got $4 million in financing last month from Olympic Venture Partners and Dain, Rauscher & Wessels.