"Fulfillment by Amazon" Makes It Possible for Amazon.com Customers to Receive Benefit of Amazon.com Shipping Offers When Buying from Third-Party Sellers

SEATTLE--(BUSINESS WIRE)--Sept. 19, 2006-- Amazon Business Solutions today launched "Fulfillment by Amazon" and "WebStore by Amazon," giving small and medium-sized businesses access to Amazon's order fulfillment, customer service, customer shipping offers, and underlying website technology to improve the experience they offer their customers.

Fulfillment by Amazon

Fulfillment by Amazon allows businesses to use Amazon's own order fulfillment and post-order customer service infrastructure, and allows Amazon.com customers to receive the benefit of Amazon.com shipping offers when buying from third-party sellers who use Fulfillment by Amazon. Amazon.com customers can now use offers such as Amazon Prime and Free Super Saver Shipping when buying products with the "Fulfilled by Amazon" icon next to the offering listing.

"We created Fulfillment by Amazon because it is good for Amazon.com customers, and therefore, great for our third-party sellers," said Joe Walowski, Product Manager, Fulfillment by Amazon. "With membership in Amazon Prime growing every day, more and more Amazon.com customers want a great deal on shipping and to receive their orders quickly. Fulfillment by Amazon makes it possible for sellers to offer Amazon.com customers this convenience."

For a handling fee as low as $0.50 per item plus $0.40 per pound and a storage fee of $0.45 per cubic foot per month, Fulfillment by Amazon frees online sellers from the time and money required to store, pick, pack, ship, and provide customer service for the products they sell online. Businesses simply send their products to an Amazon fulfillment center where Amazon stores and sends those products to customers who order them on Amazon.com or the business's WebStore (see "WebStore by Amazon" below). Amazon will also manage post-order customer service such as customer returns and refunds for businesses that use Fulfillment by Amazon.

"We are excited about the possibilities of Fulfillment by Amazon for our children's product line 'The Faery Folk dolls.' For small manufacturers of unique products like us, one of the greatest challenges is getting the product to the consumer in a cost-effective manner. The overhead costs of pick-and-pack for one-off orders drains time and resources away from the important tasks of marketing and business development. Fulfillment by Amazon alleviates this issue by acting as the small business owner's fulfillment house at an acceptable price point," said Charles Erdman, co-founder and president of Dervish Media and Dervish Toys. "With a rapidly growing brand and product line, execution is critical for our business, which is why we're so optimistic about the impact Fulfillment by Amazon can have on our business."

WebStore by Amazon

WebStore by Amazon allows businesses to create their own privately branded e-commerce websites using Amazon technology. Businesses can choose from a variety of website layout options and can customize their sites using their own photos and branding. For example, Seattle Gift Shop now has its own WebStore at www.seattlesgifts.com. WebStore by Amazon users pay a commission of 7 percent (price includes credit card processing fees and fraud protection) for each product purchased through their site and a monthly fee of $59.95.

"Not only has using WebStore by Amazon increased my sales dramatically, but its easy-to-use tools give me complete control of the look and feel of my site," said Kathy Wojtczak, who manages www.elementjewelry.com using WebStore by Amazon. "Plus, I can use WebStore by Amazon to track and manage all of my online inventory and sales in one place."

WebStore by Amazon allows businesses to:

  • Maintain their brand while leveraging Amazon's own scalable, reliable, and secure back-end technology.
  • Make it secure, simple, and easy for visitors to buy using their existing Amazon.com accounts.
  • Earn additional revenue by including other products from Amazon.com in their WebStore and referring customers through the Amazon Associates program.

"Day-to-day mission-critical functions such as handling sensitive payment information and making sure our websites can handle big spikes in traffic are fundamental pieces of Amazon's business. We've made significant investments over the past decade and employ world-class software engineers to make sure these things are done right," said Tim Mirick, Director, Amazon Business Solutions. "WebStore by Amazon now puts these people and this investment to work for sellers, so they can focus on what they do best-building their brands and managing their merchandise."

Both Fulfillment by Amazon and WebStore by Amazon are available today in beta. They can be used separately or together. Go to http://www.amazonservices.com/businesssolutions for more information, including information on how businesses can sign-up for these new services.

About Amazon Services & Amazon Fulfillment Services

Amazon Services, LLC is a subsidiary of Amazon.com, Inc. (NASDAQ:AMZN) that offers the technical platform, operational capabilities and e-commerce expertise that power Amazon.com to other businesses seeking to create a world-class, cost-effective e-commerce offering for their customers. Amazon Enterprise Solutions and Amazon Business Solutions are Amazon Services groups. Amazon Enterprise Solutions works with large retailers such as Target, Bebe, and Marks & Spencer (UK) and the Amazon Business Solutions works with small to medium-sized businesses. Amazon Fulfillment Services, Inc. is a subsidiary of Amazon.com, Inc. that operates U.S.-based fulfillment and customer service networks for Amazon.com and the businesses that leverage fulfillment or customer service as part of their offering from Amazon Enterprise Solutions or Amazon Business Solutions.

About Amazon.com

Amazon.com, Inc., (NASDAQ:AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.joyo.com.

As used herein, "Amazon.com," "we," "our" and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, significant amount of indebtedness, inventory, limited operating history, government regulation and taxation, payments, fraud, consumer trends, and new business areas. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005, and all subsequent filings.

CONTACT: Amazon.com, Inc., Seattle
Media Hotline, 206-266-7180

SOURCE: Amazon.com, Inc.