Amazon.com Launches Jewelry Store -- Commits to Industry-Leading Prices for High-Quality Merchandise
SEATTLE--April 22, 2004--Amazon Services, Inc., an Amazon.com (Nasdaq:AMZN) company, today announced the grand opening of its new Jewelry Store (www.amazon.com/jewelry) -- a single shopping destination committed to offering low prices on a large selection of high-quality rings, necklaces, pendants, bracelets, earrings and watches. Amazon.com is providing a Web site feature that makes it easy for customers to inform Amazon.com if they find a lower price on a comparable product from another reputable seller. If a lower price is verified, Amazon.com will reduce its price on its Web site to benefit all customers -- not just the customer reporting the lower price.
"We are thrilled to offer Amazon.com customers an unparalleled jewelry shopping experience by making it easy to find and discover the finest jewelry at lower prices than other retailers -- online or offline," said Eric Broussard, vice president, Amazon.com Jewelry. "Our goal is to bring to jewelry the same trusted shopping experience that customers have come to expect from Amazon.com."
Traditionally, jewelry product margins are high, in order to cover the costs of holding inventory, renting store space, and providing display cases, a professional sales force and security. Because Amazon.com does not incur many of these costs, the company is able to significantly reduce the margin on its products. While the average margin in jewelry retailing is approximately 45 to 50 percent, Amazon.com targets substantially lower margins on jewelry sales, and lower still -- about 13 percent -- on diamond jewelry.
Each piece of jewelry sold by Amazon.com is inspected by jewelry professionals to verify quality attributes and ensure an excellent product. Customers will find detailed product specifications about the gemstones, settings and metal stamps. Amazon.com also offers a "Create a Diamond Ring" feature with which customers can find the right diamond engagement ring based on their choices of diamond shape, carat size, color/clarity and setting style. A Learning Center provides buying guides for pearls, diamonds, precious metals and watches. Many of the diamonds and gemstones in the store are independently certified to be a specific cut, clarity, color, shape and weight. Finally, the store provides all of the tools and helpful information that Amazon.com customers know and love, such as Customer Reviews, Top Sellers, So You'd Like To, and Listmania.
The Amazon.com Jewelry Store offers a selection of more than 75,000 unique items, including sterling silver, blue topaz earrings for $15, and a platinum, radiant-cut diamond necklace totaling 31.74 carats for $93,000.
To provide this large breadth of selection, Amazon.com has teamed with jewelry merchants and designers to offer fine jewelry, fashion jewelry, designer jewelry, casual watches, sport watches, luxury timepieces and accessories.
About Amazon.com Jewelry
Amazon.com's Jewelry Store (www.amazon.com/jewelry) provides the easiest way for customers to find, discover and buy high-quality jewelry and watches at industry-leading prices. As part of the store's high-quality standards, customers will find detailed product specifications, independent certifications, a Learning Center and a Create a Diamond Ring feature all in one convenient destination. The store also features merchandise from merchant partners including Fortunoff, Ice.com, Kane Marie Fine Arts Gallery, Luxuria, Mondera and others.
Amazon.com, a Fortune 500 company based in Seattle, opened its virtual doors 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 sellers offer millions of unique new 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, kids and baby, and home and garden.
Amazon.com operates six Web sites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.fr, www.amazon.co.jp and www.amazon.ca.
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 potential future losses, significant amount of indebtedness, competition, commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, foreign exchange rates, management of potential growth, system interruption, international expansion, consumer trends, inventory, fulfillment center optimization, limited operating history, government regulation and taxation, fraud, 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, 2003, and all subsequent filings.