Nov 172006

Amazon's "Customers Vote" Promotion

Each week for the next four weeks, Amazon is presenting four potential deals. They're allowing consumers to vote on which of the four will actually be offered that week. Short video on the home page explains the promotion.

Week 1 choices:

  • Xbox 360 for $100 (list is $299.99), 1000 units at this price
  • Mongoose Mountain Bike for $30 (list is $139), 2500 units at this price
  • Barbie Interactive Princess for $10 (list is $49.84) , 2000 units at this price
  • $100 AMZN gift certicate for $40, 2000 units available

So far, 88% of votes have gone for the X-box. No surprise there.

Assuming the X-box wins (it will) and assuming they could have sold those 1000 units for full price (they could have), this promotion will cost Amazon $200k in forgone margin.

I have no doubt this will turn out to be a shrewd marketing investment. The blogosphere is already abuzz over $100 X-boxes. At this moment, the search "amazon 100 xbox" returns 1867 results on technorati, with most of those mentions coming yesterday. The story will quickly leak into radio and TV. This will be a feeding frenzy.

Smart, aggressive marketing. And consistent with the Amazon brand.

I'd love to see their bandwidth logs for November 23 around 11 a.m. PST...


One Response to "Amazon's "Customers Vote" Promotion"
Alan says:
Update: amzn servers couldn't handle load, great customer anger ensues ouch

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