By Keith Regan E-Commerce Times
02/12/01 10:36 AM PT
By increasing sales of downloads, and therefore reducing reliance on traditional delivery
and shipment methods, Amazon and founder Jeff Bezos could further cut costs and
boost the company's bottom line.
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Amazon.com (Nasdaq: AMZN)
launched a new software download store Monday, aimed at providing
customers with near-instant access to products it already sells by mail.
The download option also enables the Seattle, Washington-based
e-tailer to sell software without having to handle or ship
the product to the customer .
"We can now meet the needs of our customers in a matter of
minutes instead of a matter of days," Amazon general manager
of software Kirk Koenigsbauer said. "Near real-time delivery
is a huge benefit to software shoppers."
Customers who need the latest virus protection software to
rescue an infected personal computer, for instance, are
probably not willing or able to wait for delivery by mail.
Amazon is also hoping the download option will appeal to
U.S. customers preparing their own tax returns.
Secure Process
The process for buying software via download will be the same
for Amazon shoppers as the process for buying electronic books,
the company said. After completing checkout, customers will
receive a URL for download by e-mail.
Amazon partnered with Ingram Micro (NYSE: IM) and Preview
Systems (Nasdaq: PRVW) to create the download system.
The launch of the download store is designed to coincide with the start of the busy tax
preparation season in the U.S., when millions of Americans
turn to software programs that enable them to complete
their own tax returns. Tax titles are among the first
wave of software being offered for download.
Cost-Cutting Attempts
Increasing its sale of downloads, and therefore reducing
reliance on traditional delivery and shipment methods, could
help Amazon cut costs and boost its bottom line. A study
released last week by Jupiter Media Metrix found that more
than 40 percent
of e-tailers lose money on the shipping and handling process.
On Friday, Amazon also announced plans to consolidate its
European customer service operations, closing a facility
in The Hague, Netherlands, and offering all 240 employees
the option of relocating to either the UK or Germany.
Amazon is also trying to emerge from the shadows of its
largest layoffs to date, which involved the
firing of 1,300 employees last month.
A Seattle-based union continues to press the company
on its policy toward workers, and helped stage a
brief employee walkout last week.
Not Slowing Down
Though the e-tailer has caught flack from some analysts
for trying to spread its reach across too many product
lines, Amazon has produced a stream of new offerings in recent months.
In November, Amazon began offering wireless phones and calling plans,
and just after Christmas, the company opened an outlet section
on its site touting after-holiday bargains.
Amazon also unveiled music and video downloads within the past year.
E-tail Invades the Real World February 12, 2001
The latest step of the dot-com move toward brick-and-clicks is the Internet kiosk placed
in a real-world store. Surprisingly, in-store Web kiosks have some
advantages over at-home online shopping.
Amazon To Charge for E-mail Book Reviews February 08, 2001
Amazon CEO Jeff
Bezos recently told the Securities and Exchange Commission that
he may sell some of the Amazon stock he holds personally.
Nowhere To Hide from Amazon's Reach February 08, 2001
Amazon knows that 1-Click can serve as a way to handle small payments for
just about everything on the Net that has traditionally been free.
E-Commerce Looks at a Union Label February 06, 2001
The basic needs of American workers do not change just because a company
operates online, not offline.
And the Dot-Com Survivors Are ... February 02, 2001
On the World Wide Web, there's a vastly different series of challenges facing the
dot-com players than the challenges faced
by the contestants on CBS' hit TV show 'Survivor.'
Amazon Backtracks on Gag Rule for Layoffs February 02, 2001
Laid-off hourly employees at Amazon have been told that they can cross out
the non-disparagement clause in the agreement, but corporate staff must sign it.
Amazon Beats Street, Warns, and Lays Off 1,300 January 31, 2001
In spite of triple-digit growth in other sectors, Amazon's core business, the books/music/video
segment, grew 11 percent in the fourth quarter.
Hype Heats Up as 'Ginger' Lands at Amazon January 26, 2001
Public interest in 'Ginger' was sparked
by reports that the invention had drawn
superlatives from tech leaders like Amazon CEO Jeff Bezos.
Amazon's Forced 'Payments' a New Net Auction Trend? January 26, 2001
Amazon said that sellers will be able to offer alternative payment methods with their online auctions -- as long as they offer 'Amazon Payments.'
Study: Online Ads Soar 21 Percent January 23, 2001
In December, MSN, Yahoo! and Amazon dominated the
Web advertising market, taking the top
spots for the highest ad revenues, the most ads served, and
the highest ad spending, respectively.
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