Thursday, February 03, 2005

Ship Till We Drop

Amazon.com is offering customers a new customer loyalty program featuring free two day shipping. For a flat fee, customers can get free 2 day shipping and low cost overnight shipping throughout the entire year.

Amazon admitted to analysts that this would have a negative impact on earnings in the short term, but expect this kind of program to bind their customers more closely and lead to higher revenue in the long run.

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