by Christopher Freeburn | August 20, 2013 11:30 am
Amazon (AMZN) is facing a fresh challenge from another discount online retailer.
Overstock (OSTK) says it has retained an outside contractor to monitor book prices on Amazon’s website and will adjust its own book prices to mirror Amazon’s. Overstock’s CEO says the move will likely prove popular with book publishers who are looking for “more competition for Amazon,” the Wall Street Journal notes.
Consumers can also receive 15% rebates on book buys if they join Overstock’s shipping loyalty club. That costs $20 a year, but offers free shipping.
The latest bid to woo shoppers away from Amazon follow a limited offer last month under which Overstock cut 10% off Amazon’s book prices. While Overstock saw daily book revenue fall $11,000, company officials say that Amazon would have lost up to $1 billion if it had to match Overstock’s discount over a whole year.
Overstock expects its price-matching to increase book sale volume, allowing it to negotiate lower wholesale prices from publishers.
Shares of both Overstock and Amazon climbed more than 1% in Tuesday morning trading.
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