Borders, "Target," Circuit City" and Toys "R" Us. So while Amazon only handled the net orders, the companies handled the inventory. these services proved to be immensely profitable for
Amazon
By 2003, Amazon's warehouses could handle thrice the volume they used to handle in 1999, while
the cost of operating them decreased from 20 percent of Amazon's revenues to less than 10
percent. The efficiency was also seen in its inventory turnover which was 20 times a year while for
most other retailers it was below 15. In 2003, Amazon decided to slash its shipping charges.
Customers who visited the site were greeted with a pop-up window announcing the company's
the site's books, music, DVDs or video stores. the company also decided to reduce the charges on single item orders and international shipment