Mon, Jun 09, 2003 - Page 10 News List

Amazon.com expands its bulk sales discount section

BLOOMBERG

Amazon.com Inc, the largest Internet retailer, is expanding into bulk sales of consumer products such as vitamins and disposable cameras as the company tries to find ways to attract more customers and boost sales.

The discounted items, such as five Cannon BCI-21 ink cartridges for US$47.49, are featured at the bottom of Seattle-based Amazon.com's expanded Web page. They are offered in limited quantities for 24 hours, then replaced with other products.

"Amazon.com has consistently shown a streak toward innovating how they present offers to their customers," said Mary Brett Whitfield, a senior vice president at consultant Retail Forward.

Web shoppers "aren't going to go back to a site that looks the same, year in and year out," she said.

The new feature, named "Bottom of the Page," was introduced in March and reinforces founder and chief executive Jeff Bezos's discount-pricing strategy. The bulk packaging helps boost the prices above US$25, qualifying the purchases for free shipping.

Amazon.com also offers consumer products through a marketing agreement with online retailer Drugstore.com Inc.

Amazon.com offers nine bulk items at a time at 50 percent or more off list price. Spokesman Bill Curry declined to say whether the company plans to add more consumer products. Amazon.com's marketing agreement with Drugstore.com, in which it has a 19 percent stake, expires next March.

In recent days, "Bottom of the Page" featured 192 pieces of Nicorette Stop Smoking Aid for US$59.88, or 29 percent off list price. Five Kodak Fun Saver flash cameras went for US$25.98, a 57 percent savings. A Yukon Tool 24-piece router bit set was selling for US$49.99.

Smaller quantities of many of the items from Drugstore.com are offered elsewhere on Amazon's Web site.

Drugstore.com chief executive officer Kal Raman said that the new offering isn't cutting into his company's business.

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