March 1, 2005

And you're ugly, too . . .

by

As an AFX wire story observes, “Four years ago, Amazon.com needed traditional retailers to expand its product lines while brick-and-mortar stores needed Amazon.com’s presence on the Web. Now, it’s slowly changing. In an effort to drive consumers to its own Web site, Circuit City said Monday that it’s ending its relationship with Amazon.com.” As one analyst explains, “They feel that they’re getting enough traffic where they can directly bypass. They feel that if the consumer goes directly to the Web site, why share it with Amazon.com?” In announcing the severance, Fiona Dias, president of Cirucit City Direct, was rather surprisingly dismissive of Amazon: “Circuitcity.com has grown tremendously since August 2001 when the agreement was announced,” Dias said. “We have been pleased with customer response to our own Web site and have elected to focus on growing the business through our own channel, rather than focus on the small amount of sales the relationship with Amazon.com has generated.”

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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