business news in context, analysis with attitude

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.
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…