Cybersqueeze: comparison shopping is the Web's virtue -- unless you're a seller; Amazon.com, others face weak pricing and losses even as their stocks soar: Can a Fifth Avenue develop?

Article Abstract:

Book-selling chains like Borders Group and Barnes & Noble are being impacted by the rapidly expanding market of selling books over the Internet. Consumers are using Internet search engines to comparison shop, and because shoppers can quickly find the lowest price for any title, profit margins are necessarily staying thin. According to Rick Vanzura of Borders Group, incentives are forcing revenues up even if this means doing business at a loss. Meanwhile, Internet bookseller Amazon.com's market capitalization has risen to $6.4 billion, which is almost as much as the combined value of Borders and Barnes & Noble, and Amazon.com is still reporting losses. In 2nd qtr 1998, Amazon.com's revenue was up 316% to $116 million. Nevertheless, the company's losses were $21.2 million, or 44 cents a share. In related news, Broadcast.com, which is in the business of putting TV and radio broadcasts on the Internet, went public on Jul 17, 1998, at $18 a share. That same day, Broadcast.com's stock increased to $62.75.

Economic aspects, Finance, Internet, Electronic commerce, E-commerce, Company sales/revenue, Company sales and earnings, Chain stores, Company earnings/profit, Initial public offerings, World Wide Web, Barnes & Noble Inc., Borders Group Inc., BKS, Company public offering, Yahoo! Broadcast Services

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Amazon.com reverses course on fee decision

Article Abstract:

Amazon.com came to a quick decision to identify the books it promotes with publishers' underwriting. The book-reading public and booksellers alike were stunned by the admission that as much as $10,000 had been paid by certain publishers to 'recommend' certain books in its Online bookstore. The company also announced a very liberal return policy as a good will apology to anyone who may have purchased books that were 'recommended.'

Comment:

Underwritten book promotions will now be identified

Marketing procedures, Mail Order Houses, Electronic Shopping and Mail-Order Houses, Catalog and mail-order houses, New Electronic Marketing, Corporate Images, Ethics, Publishing industry, Marketing, Abstract, Ethical aspects, Mail-order industry, Mail order business

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Amazon.com to add cards and rare books

Article Abstract:

You would think that Amazon.com had cornered the market on every business out there but you were wrong. Amazon.com is planning to introduce access to rare books and electronic greeting cards to its vast array of services. So, the on-line bookseller has expanded again and its keeping up, or charging ahead of the competition.

Services introduction, Services, Company service introduction, Service introduction

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