Internet News reports that Amazon CEO Jeff Bezos is not committing the company to maintaining its free shipping policy for all orders over $25, though he suggested to the Morgan Stanley Software, Services, Internet & Networking Conference that it would remain in some form.
"Long term you can use the world's best retail rule of thumb -- customers get what they want, and what they want is free shipping," Bezos said. "But for us, structuring it around things like a $20 book is hard."
Bezos also said that Amazon expects its long-term operating margins to be in the low double-digit range, and that the strategic relationships it has formed with other retailers account for 23 percent of the goods it sells in North America.
"Long term you can use the world's best retail rule of thumb -- customers get what they want, and what they want is free shipping," Bezos said. "But for us, structuring it around things like a $20 book is hard."
Bezos also said that Amazon expects its long-term operating margins to be in the low double-digit range, and that the strategic relationships it has formed with other retailers account for 23 percent of the goods it sells in North America.
- KC's View:
- The development of strategic alliances with businesses that complement, not threaten, Amazon’s future has been one of the smartest moves Bezos has made. Perhaps the notion of alliance-creation is something that more brick-and-mortar retailers ought to be considering…
