The retired couple are part of the swarm of seasonal employees taking up temporary residence in this small desert city — home to one of Amazon’s warehouses — to help the online-retail giant fulfill its influx of holiday orders.

The Williamses migrated from their home in Hurricane, Utah, to take the two-month warehouse gig. “The money always helps” and the physical labor “always makes me feel better,” Mr. Williams said as he walked his miniature schnauzer, Maya, around the Desert Rose RV park, where the couple is currently residing. The 75-year-old said this was his second stint as a seasonal Amazon worker, after spending last autumn at Amazon’s Campbellsville, Ky., location.

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But that isn’t deterring Quidsi from giving the online pet supplies business another try.

The company, which is the mastermind behind Diapers.com, BeautyBar.com and Soap.com and was bought by Amazon for $545 million last November, is launching Wag.com, an online purveyor of dog food and cat litter and 10,000 other products for your furry, feathered and scaly friends.

When Quidsi’s founders Marc Lore and Vinit Bharara tell me that they are seriously launching an online pet store, I have to ask: Does this mean we are in another bubble?

Lore, who has a little expertise in this matter as an investment banker turned entrepreneur, says we aren’t.

“Back then, the economics didn’t work and there were no revenues. It’s night and day … Today people are confusing high valuations and a little frothiness with crazy.”

Or maybe the two have been listening to one of Silicon Valley’s better-known VCs, Marc Andreessen, who predicted at D9 that “almost every dot-com idea from 10 years ago that failed will succeed. Pet food, diapers, deliveries, they’re all working again now.”

“It is a lot easier today,” Lore admits. “Back then [Pets.com] started off with front-end marketing. They didn’t invest what they needed to do on the back end, like warehouses and logistics. I’m sure that was the plan to do that, but they never had the opportunity.”

The launch of Wag.com represents Quidsi’s first as an independently operated subsidiary of Amazon.com. The company has many other sites in its pipeline, the next being a toy portal at Yoyo.com.

Bharara said they’ve developed a process for selling even the heaviest, most expensive items to ship — even dog food and baby formula.

Wag.com will be similar to Quidsi’s other verticals by offering free two-day shipping on purchases of more than $49. It will have the same 365-day return policy and customer service as its other sites.

(As a side note, Pets.com redirects you to PetSmart.com, which is currently charging $5.99 shipping on orders of $60 or more.)

Bharara said the strategy is to build a relationship with the customer by getting them to buy everyday stuff and then selling them on the higher-margin stuff. On Wag.com that might mean starting off with dog food or cat litter and then transitioning to dog toys and stylish cat collars. “It is very costly, but we’ve set it up well to do it fast and cheap.”

Before the company ever made a dollar in revenue, the founders spent two years building out its technology platform, which includes using robotics and software at its three warehouses around the country.

“Even with all that, it is expensive,” Bharara added. “It’s going to be expensive, and some people won’t make that investment, but if you play it out for the long run, the payout is well worth it.”

The company can no longer talk about its revenues because it is owned by Amazon, but Lore said that last year its revenues totaled $300 million, and most of that came from Diapers.com. Soap.com had just launched that summer.

One of the keys in launching multiple brands is being able to cross-sell across the sites and have one common shopping cart. That means shoppers can add items to their Diapers.com account and then check out on Wag.com or Soap.com.

“It seems fairly obvious that someone should be able to deliver the most basic household items,” Lore said. “We think that basic invention should be able to get done. When you have some perspective on all the other things we’ve been able to accomplish, it gives you some sense that we should be able to do this, too.”

Founded in 1999, the Salt Lake City company offers a wide variety of merchandise, ranging from bedding and home decor to appliances and sporting goods–at discounted prices.

But with a little bit of marketing polish, the practice has become a new, chic burgeoning industry.

A discount center conjures up imagines of large warehouses with cement floors full of unsold items. A flash sales deal, however, leads you believe you’ve found a pair of designer jeans for half off after sifting through dozens of boutiques on Rodeo Drive.

With that in mind, a micro industry of flash sales sites has been born.

The Gilt Groupe, HauteLook, One Kings Lane, Rue La La and Jackthreads all have their own niche, focusing on curating clothing for women or men, or furniture and home decor.

One big question is, is there enough inventory to sustain it all?

“It’s the dirty little secret in manufacturing,” said Overstock’s CEO Patrick Byrne. “The answer is that there is far more than you can possibly think. A company will say they don’t have overstock, but if you talk to the CFO, they will ask, ‘what can you truck away?’ The world is filled with excess inventory and is looking for channels to get rid of it.”

But just because the inventory is there, Byrne doesn’t believe they can all survive.

“We think the world only needs one pipeline, and we’ve built the one pipeline to do that,” he said. “The suppliers are better off with one big pipeline. If one pipeline emerges, where all the liquidation gets done, there will be price integrity in the rest of their marketplace. It’s our aspiration to be that one thick pipeline.”

On average, he said Overstock’s inventory is about 60 percent off the manufacturer’s recommended price. He said, general retail stores sell items for an average of 15 percent off and Walmart is even more heavily discounted at 30 to 40 percent off. Sites like Amazon.com, are normally somewhere in between, and flash sales generally claim discounts of 50 to 70 percent.

About a year ago, Overstock jumped on the bandwagon to launch Eziba.com, which focuses on selling a small number of items, ranging from furniture to jewelry, at heavily discounted prices via a daily email.

Eziba has the boutique look, with large photos of the products and colors bleeding off the page. That’s in sharp contrast to Overstock’s more straight-forward layout that stresses searching and browsing for items that are displayed in small thumbnail pictures.

Byrne said one of the big differences between items sold on Eziba and those sold on Overstock is the amount of inventory in stock.

Items on Eziba may have up to 5,000 on the virtual shelves, whereas products sold on Overstock have only a couple of hundred left.  Another difference is that there’s only a dozen or so items for sale on Eziba at any given time, while Overstock’s inventory spans 300,000 items (not including books and movies).

One of the big differences between Eziba and the competition is that it’s able to leverage Overstock’s infrastructure.

For instance, Eziba customers get the same customer service as Overstock and have the same flat-rate shipping of $2.99 an order.

So far, Byrne says the introduction of other sites has not affected the company’s business.

“It’s like swimming around in Lake Michigan and asking did you bump into each other. The world is so much bigger than anyone gets. It’s so enormous,” he said.

Overstock has been steadily growing over the years.

In 1999, the company recorded revenues of $1.8 million, and last year, revenues totaled $1.1 billion. Still, it’s a microcosm of the super-large e-commerce world. The company’s stock is trading at $14.31 a share for a market cap of $333.4 million. In contrast, Amazon’s is valued at around $75 billion, and eBay is worth $40 billion.

Generally, Byrne categorizes the company as a nice profitable company that has built a very solid foundation over the past few years.

He said the recent stability, compared to the start-up years, gives him the chance to experiment with new lines of business. ”We are very agile. We can develop new things really quickly and snap them into the platform we’ve built.”

In addition to Eziba, the company also runs Worldstock, a site that helps artisans from around the world sell their crafts online. Byrne made the recent decision to give all of its profits to a charity that’s focused on helping build classrooms in developing countries around the world.

It’s also recently launched Main Street Revolution, which helps small business around the U.S. sell their goods online, ranging from children’s clothing to specialty home-made cookies.

The company’s latest endeavor includes experimenting with a significant rebranding of the Web site.

In January, it introduced the domain name O.CO, which is a shortcut to its regular Web site. During an initial introductory period, customers who shop at O.CO will receive free shipping.

Byrne said the reason behind the name is to have a more recognizable brand across the 90 countries it operates in. While the domain name will change permanently internationally, the company is only experimenting with the name domestically.

Despite new reports of the funding today, the line of credit from TriplePoint Capital is months-old, and we’ve learned it was used primarily for building out a new warehouse in Louisville, Ky.

According to our sources, who declined to be named, only $5 million of the $15 million has been drawn down from the facility, and it’s one of three lines of credit the company has. The company spokeswoman declined to comment.

The Gilt Groupe is a members-only online retailer focused on luxury brands. It has seen huge success in offering deep discounts on items for short periods of time. More recently, it has set its sights on the local deals business, similar to the businesses being built by Groupon and LivingSocial. It has also expanded into offering luxury travel deals.

Gilt’s local deals site, called “Gilt City,” offers bargains on items ranging from massages to frozen yogurt. So far, it’s launched in Boston, Chicago, Los Angeles, Miami, New York and San Francisco. It’s going up against two feisty and well-funded competitors: LivingSocial, which just raised $175 million in capital from Amazon, and Groupon, which turned down Google’s $6 billion acquisition bid.

A round of funding raised this summer supported those product rollouts. In total, the company has raised upward of $50 million from investors, including General Atlantic and Matrix Partners.

The line of credit shows that the emerging company still needs additional financing for one-off capital projects as resources are pulled in other directions. A big focus is likely on hiring a local salesforce, which is considered a specialty of Groupon. Still, Gilt Groupe is considered one of the more likely IPO candidates, and has said in the past that it expects to achieve gross revenues of $400 million to $500 million by the end of this calendar year.

Chegg, the online textbook rental service, has raised another $75 million from Asia-based Ace Limited, according to sources.

Ace seems to be nonexistent on the Internet, although sources said it is a Hong Kong-based investment firm.

The round comes after a huge Series D investment in late 2009, which already brought Chegg’s funding to a whopping $144 million.

Venture firms, such as Kleiner Perkins, Foundation Capital, Insight Venture Partners and others have presumably handed over that money in hopes of big returns.

And, of course, the inevitable IPO for the Silicon Valley start-up.

That’s because Chegg has become the front-runner in the increasingly competitive online textbook rental space as it seeks to disrupt the $10 billion college textbook business.

Chegg got its start in 2005 at Iowa State University as a classified rental service, where books were the dominant item, but evolved its business to focus on actually doing the textbook rentals.

The company’s unusual name, Chegg, is a mashup of “chicken and egg,” and its model is similar to that of innovative video rental outfit Netflix (NFLX).

Chegg now serves close to 7,000 schools across the U.S., with 120 employees in Silicon Valley and more at a warehouse operation in Louisville, Ky.

Typically, a rental costs a fraction of what buying a book outright does. It is ordered online and then sent to a renter, who then returns it.

There is, of course, lots of competition.

The Barnes & Noble (BKS) College division recently began testing a textbook rental program, for example, and is rolling it out to 25 U.S. colleges. And BookRenter is a smaller rival.

In a bid to expand its offerings beyond books, Chegg recently acquired CourseRank, a Mountain View, Calif., start-up that helps students “share their course schedule, take classes with their friends, read and write reviews on classes and professors as well as find out how professors grade.”

Here is a video interview I did with Chegg CEO Dan Rosensweig recently at Chegg’s Santa Clara, Calif., HQ:

]]> http://allthingsd.com/20100926/exclusive-chegg-raises-75-million-in-additional-funding-from-asias-ace/feed/ 2 http://allthingsd.com/20100819/cheggs-dan-rosensweig-talks-about-the-next-wave-of-online-textbook-rentals-and-more/ http://allthingsd.com/20100819/cheggs-dan-rosensweig-talks-about-the-next-wave-of-online-textbook-rentals-and-more/#comments Thu, 19 Aug 2010 19:58:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=32485

Earlier this week, BoomTown went down to Santa Clara, Calif. to the offices of Chegg, the online textbook rental leader, to pay a visit on longtime Silicon Valley exec Dan Rosensweig.

The voluble Rosensweig has had a series on interesting posts, from stints at CNET Networks and Ziff-Davis before a top job at Yahoo (YHOO). After that, it was as a partner at the Quadrangle Group and then running the Guitar Hero division of Activision Blizzard (ATVI).

Now he is CEO of Chegg, where he arrived in February.

After raising $144 million in funding, Chegg has become the front-runner in the increasingly competitive online textbook rental space.

Venture firms, such as Kleiner Perkins, Foundation Capital and, most recently, Insight Venture Partners, have presumably handed over that money to co-founders Osman Rashid and Aayush Phumbhra in hopes of big returns.

And, of course, the inevitable IPO.

Chegg got its start in 2005 at Iowa State University as a classified rental service, where books were the dominant item, but evolved its business to focus on actually doing the textbook rentals.

The company’s unusual name, Chegg, is a mashup of chicken and egg and its model is similar to that of innovative video rental outfit Netflix (NFLX).

Chegg now serves close to 7,000 schools across the U.S., with 120 employees in Silicon Valley and more at a warehouse operation in Louisville, Ky.

Typically, a rental costs a fraction of what buying a book outright does. It is ordered online and then sent to a renter, who then returns it.

All this activity has attracted a lot of interest from both big and small players, especially given the $10 billion college textbook business.

That makes for lots of competition. The Barnes & Noble (BKS) College division recently began testing a textbook rental program, for example, and is rolling it out to 25 U.S. colleges. And BookRenter is a smaller competitor.

Today, in a bid to expand its offerings beyond books, Chegg said it had acquired CourseRank, a Mountain View, Calif. start-up that helps students “share their course schedule, take classes with their friends, read and write reviews on classes and professors as well as find out how professors grade.”

Terms of the deal were not disclosed.

Rosensweig talks about all that and more, such as digital downloads, in the video interview below, which includes a tour of Chegg:

And here’s the official press release about Chegg’s acquisition of CourseRank:

CHEGG.COM ACQUIRES COURSERANK

Popular college course planning site that helps students with course and professor selection, hopes for rapid expansion

SANTA CLARA, Calif., August 19, 2010–Chegg.com, the number one online textbook rental company, today announced that it has acquired CourseRank, the Mountain View-based start-up that provides college students an easy and convenient way to create and share their course schedule, take classes with their friends, read and write reviews on classes and professors as well as find out how professors grade.

“We are excited about adding CourseRank to the portfolio of content and services we can offer students to make college easier and more affordable,” said Dan Rosensweig, President and CEO of Chegg.com. “We all share a commitment to saving students time, money and making them smarter. It’s amazing how popular CourseRank has become on campus, having nearly 100,000 users and growing every day.”

Founded by five college students and already being used on 175 colleges and universities across the U.S., CourseRank helps students manage and plan their academic careers. CourseRank’s scheduling, planning and course review system guides students by arranging relevant course information in an easily accessible display where they can track their progress towards the goal of graduation, mapping courses taken, and grades received. A feature for students to find textbooks for their courses using CourseRank is currently in beta for select schools.

“We’re excited to be part of the number one online textbook rental company in such a hot space,” said Filip Kaliszan, Co-Founder and CEO of CourseRank. “We share Chegg’s commitment to using technology to make life easier and cheaper for college kids, and we are excited about expanding our reach to more schools, adding many new features in the next few months.”

CourseRank, founded in 2007 by three Stanford University students, has seen tremendous growth in the past year. To date, the company has achieved adoption by some of the country’s top schools including Stanford University, the University of California, Berkeley, and Cornell University.
Students can sign up for free and the first 5,000 will be entered for a chance to win cool prizes. For more information, visit www.courserank.com.”

]]> http://allthingsd.com/20100819/cheggs-dan-rosensweig-talks-about-the-next-wave-of-online-textbook-rentals-and-more/feed/ 1 http://allthingsd.com/20100810/sams-club-to-use-wi-fi-to-push-tvs/ http://allthingsd.com/20100810/sams-club-to-use-wi-fi-to-push-tvs/#comments Tue, 10 Aug 2010 12:00:58 +0000 Ann Zimmerman http://voices.allthingsd.com/?p=28100 This holiday season, Sam’s Club is making a big bet on Internet-connected television sets—and hopes that providing free Wi-Fi in its stores will help draw customers to the new technology.

The Wal-Mart Stores Inc. (WMT) membership warehouse chain’s more than 500 clubs will be outfitted with Wi-Fi by November. The move is testament to Sam’s Club’s high hopes for Internet TV sets and other Web-enabled devices this holiday shopping season.

By providing Wi-Fi, Sam’s Club says it hopes to help customers better understand such products, which are still relatively new to the market. “This will allow a member to walk up to a Samsung LCD Internet-enabled TV and see how to find his Facebook page or stream video from Vudu,” said Sam’s Club Chief Executive Brian Cornell in an interview. “It is an intimidating category with lots of complexity.”

But Wi-Fi also will allow Sam’s Club shoppers more reliable Internet access on their smartphones in the warehouse, where they can find additional information about what they are buying or check competitors’ prices.

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]]> http://allthingsd.com/20100810/sams-club-to-use-wi-fi-to-push-tvs/feed/ 0 http://allthingsd.com/20100305/almost-famous-mehdi-maghsoodnia-of-bookrenter/ http://allthingsd.com/20100305/almost-famous-mehdi-maghsoodnia-of-bookrenter/#comments Fri, 05 Mar 2010 09:35:13 +0000 Drake Martinet http://voices.allthingsd.com/?p=22116 A feature wherein All Things Digital looks at up-and-coming and innovative start-ups you should know about.

This week: We took a coffee break (and made an interview and video) with Mehdi Maghsoodnia, CEO of BookRenter, a company that claims to be “numero uno” in online textbook rentals, a bone of contention between it and larger competitor Chegg.

Who: Mehdi Maghsoodnia

What: Chief Executive Officer

Why: BookRenter is in a battle with competitor Chegg. Mehdi freely admits that Chegg holds more market share, but says his model has the staying power to outlast it. Presumably, Chegg begs to differ.

Where: bookrenter.com (Web site); @bookrenter (Twitter); Campbell, Calif. (analog place)

Who else: BookRenter is in a battle for the hearts and minds of college students everywhere. On one side, it competes with college bookstores, Amazon (AMZN), and a trial-rental program from Barnes & Noble (BKS). Once a customer goes the way of rental rather than purchase, BookRenter has to fight with Chegg, the textbook service now led by longtime Silicon Valley exec Dan Rosensweig and whose eggshell has been stuffed with $144 million in venture funding.

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Five Stats You Won’t Find in His Facebook Profile

Worst Job Ever: I used to sweep the grounds for a hotel in San Francisco, called Roberts at the Beach Motel (it’s still there). It was right next to the zoo, and the wind would blow all the dust, sand and junk into the hotel, and my job was just to sweep the floor. That was not at all fun.

Geek Crush: I’m a fanatic in terms of business models, and I track the careers of people I admire. I keep track of Maynard Webb, who used to be the COO at eBay (EBAY). I track people with clever minds and clever ideas.

Gadget of the Moment: I love my Apple (AAPL) iPhone–for the first time recently I traveled without my laptop. It was great. The app environment is fascinating. If you look on my phone, the apps are in two distinct sections. One is all the games that keep my kids busy, and the second category is functional things for me. News feeders, banking…and I watch all kinds of videos on the TED app when I’m traveling.

International Businessman of Mystery: I was born in Iran. Then, we moved to London. I traveled a lot and lived all over. I realized early on that a consequence of that is I’m culturally very unmarketable. It’s pretty impossible to market to me. Which, by definition, means I’m not the greatest marketer, because I don’t know what makes people want to buy things.

It’s All in the Family: I sit on the board of Nature Air, an airline in Costa Rica. It’s the first regional green airline, and it’s the family business.

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Bio in 140 Characters

Mehdi grew up global, but landed in Silicon Valley. He spent time as a VC then moved to head CafePress. Now he’s CEO at BookRenter.

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The Five Questions

Let’s get right into this. How are you guys different from Chegg?

When I was at CafePress, we were the biggest online t-shirt retailer in the world. We spent a lot of time getting shirts in from China, organizing them, putting them in bins, tracking them, printing them and so on. I observed how much of our management bandwidth and resources went into back-end fulfillment as a retailer. I came out of CafePress and was sitting on the venture side when I saw Chegg and BookRenter. I said, “These are two teams satisfying specific demands out there, but with totally different business models.”

Chegg was trying to do everything–taking on warehousing, buying the books, etc. There were many companies doing that, by the way. Amazon among them. The BookRenter team was clever, and they said, “Let’s flip this on its head.” Investing in a book as stock is a losing venture, because your individual investment on the book loses value over time. You also lose money on leasing the warehouse, forklifts, all of it.

At BookRenter, we have all kinds of partnerships that handle those logistics, including recent partnerships with school bookstores themselves. We are in a cyclical business, where maybe four months out of the year we are handling books, and, in the other eight, the books are in the students’ hands. Our costs adjust within those cycles as quickly as changes happen.

How do you track and price all the books when you don’t own them?

So, most of the business is done today on an inventory capitalization model. That is to say, you have a position on what books you have. Everyone buys books and then has to find a match for that book in a rental relationship.

BookRenter takes a very different approach. Our software system creates rental relationships in real time, which means it figures out prices and availability for every new rental. If you come to us and say you want to rent a biology book, the system turns around and queries our suppliers and decides who will be able to get us that book at the lowest overall cost. Our cost algorithm is complex and takes into account things like the reliability of the provider for meeting its commitment on that book.

Once the determination has been made, only then do we take a position on that book and add it to inventory. I can offer as many books as [Chegg] or anyone else, because I’m offering that book virtually. I only pay when I have a paying customer.

You’ve got a lot to say about how you are going to gain on Chegg. Is this really a market that is worth the fight?

Oh yes, the market is growing very fast. We saw 300 percent growth year over year in January. The textbook business is a $9-billion-a-year industry. Someday we hope that a third of that is rentals. The value proposition is there. Renting is cheaper than buying. It’s even cheaper than buying used. Eighteen months from now, we are still going to be a smaller player, but we have the longevity.

Do you do this for the competition, or is it something else that drives you?

I’ll be honest. The best possible outcome for us is that Chegg stays prosperous. Both of us are fighting the same battle in terms of converting some of the buying market to a renting market. So, we are all in the same market development boat. But what I really like about this is the process. I see our business as a 0.9 version, so there are so many things we can still work on.

Organizationally and market-wise, it’s a very exciting thing to design a system for. You have to balance the needs of all kinds of partners. It’s like playing multidimensional chess with very good players. It’s just fun. Also, the growth factor is great. If I had to solve these problems in a business that wasn’t growing, that’s not a lot of fun.

I’ve been there man, that’s deadly. You put a lot of intellectual work into it and you can’t get anyone to care.

As a current student, I’ve got to ask: How have you dealt with undoubtedly the biggest customer problem–highlighting?

[Laughs] You know, that was a real issue early on. Our early policy was no highlighting at all, of any kind. It turned out that students didn’t seem to mind [the highlighting], and in fact many liked it. It was like someone had already done the work of showing them the important parts of the book. Today, we will only charge for damage if there’s been a real issue, like, someone spilled water all over the book and really ruined it.

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The In Living Color Interview

]]> http://allthingsd.com/20100305/almost-famous-mehdi-maghsoodnia-of-bookrenter/feed/ 0 http://allthingsd.com/20091211/aols-newest-hire/ http://allthingsd.com/20091211/aols-newest-hire/#comments Fri, 11 Dec 2009 17:19:05 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=13868 For much of this year, AOL made a point of boasting about each and every traditional journalist it hired. Message: We’re dead serious about becoming a content company, not one that sells Internet access to people who don’t know any better.

These boasts grew less frequent in recent months as the company’s hiring binge drew to a close, then switched into reverse when AOL announced it would need to shed a third of its staff. Meanwhile, AOL’s plans to inject automation into its content factory freaked out both employees and outsiders.

So the company’s most recent hire, announced shortly before AOL (AOL) separated from Time Warner (TWX), may help soothe some frayed nerves: New York Times (NYT) veteran Saul Hansell, who will run AOL’s new Seed.com content-creation platform.

But what does that actually mean? Is Hansell going to be running “AOL’s News Borg,” as Gawker put it? Or something less ominous?

I talked to Hansell yesterday and the answer is…not really clear.

Hansell, who spent 17 years at the Times, can’t spell out exactly what he’s going to do at AOL because he’s not exactly sure himself. He says he reached out to AOL CEO Tim Armstrong when the paper announced its most recent round of buyouts in October, and then he and the company went about creating a job that made sense for him.

But beyond his new title, “programming director,” a lot of what Hansell will do at his new gig is do is up in the air. The positive spin: That’s okay because uncertainty is a way of life at a start-up and AOL is in many ways a company that has to reinvent itself on the fly, just like a start-up. You can fill in the less positive interpretation of this yourself.

Hansell does have some big-picture ideas about AOL’s ability to combine its audience, workforce, technology and ad sales to produce a next-generation publishing platform. And in the interview, he offers a very nice parable about visiting Amazon’s (AMZN) warehouse, where technology and humans coexist quite nicely.

Okay. But what about the robots he’s supposed to be in charge of? “I don’t know anything about the robots,” Hansell says. “I haven’t gotten there.”

Anyway, Hansell was a good sport about letting me shove a Flip camera very close to his face, and he can tell his story much better than I can. So here you go:

]]> http://allthingsd.com/20091211/aols-newest-hire/feed/ 0 http://allthingsd.com/20090327/google-feeling-unlucky/ http://allthingsd.com/20090327/google-feeling-unlucky/#comments Fri, 27 Mar 2009 18:00:59 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=15580

]]> http://allthingsd.com/20090327/google-feeling-unlucky/feed/ 0 http://allthingsd.com/20090327/amazon-does-its-small-part-for-the-recession/ http://allthingsd.com/20090327/amazon-does-its-small-part-for-the-recession/#comments Fri, 27 Mar 2009 11:10:27 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=15538

Amazon has weathered the recession better than most, but not without a concession… or three.

The retailer said Thursday that it is shuttering a trio of distribution centers in three states and will sack or transfer the 210 employees who work at them. It’s the first time Amazon (AMZN) has closed a warehouse since 2006. Amazon spokeswoman Patty Smith described the closures as a balancing of the company’s fulfillment network, but its hard to view that as anything other than a euphemism for belt-tightening when a facility in Munster, Ind. that Amazon opened just a year and a half ago is among the three centers to be closed. Also shutting down: facilities in Red Rock, Nev., and Chambersburg, Pa.

“A variety of factors went into the plan to close these three buildings,” Smith told TechFlash. “We added approximately 3 million square feet of capacity in the North American fulfillment network in 2008, and will be converting a fulfillment center in Phoenix to accommodate our larger items (such as big screen TVs) and adding several hundred thousand sq feet to that facility. This additional capacity allows to the opportunity to better balance product mix and customer orders across the network year-round.”

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