Overstock Will Match Amazon Book Prices Permanently

Aug 19, 2013

Overstock Will Match Amazon Book Prices Permanently

By Greg Bensinger

Overstock.com said it will make permanent a strategy to keep its book prices on a par withAmazon.comAMZN +0.26%’s. The Salt Lake City-based company will match Amazon’s prices on all of its book inventory, said Chief Executive Patrick Byrne. Overstock hired a firm to trawl Amazon’s site once daily to ensure the prices match. “We think with the rise in sales volume, we can extract better pricing from publishers” at wholesale, said Byrne. “Publishers do want to see more competition for Amazon.” Overstock had offered to beat by 10% Amazon’s prices for a limited time in July. Byrne said that promotion cost it $11,000 daily in revenue from book sales. He estimated that the promotion would have cost Amazon between $500 million and $1 billion in lost revenue annually as it cut prices on its books to keep up. An Amazon spokeswoman didn’t respond to a request for comment. Byrne said that he believed Amazon’s software checks Overstock’s site about three times per day, so during a given day some book prices may be different. Sweetening the price matching deal, Overstock will give 15% rebates on book purchases to members of its $20-annual free-shipping loyalty club. The rebates are good for future Overstock purchases, Byrne said.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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