June 25, 2002, 10:32 AM — Self-dubbed "Internet superstore" Buy.com Inc. launched a price war against Amazon.com Inc. Tuesday, offering to undercut the mammoth online bookseller's book prices by 10 percent.
The move comes one week after Buy.com one-upped Amazon's offer of free shipping on orders of more than US$49 for the next three to six months. The day after Amazon announced the deal, Buy.com began offering free shipping on all qualified items in the U.S. with no minimum purchase.
Buy.com's latest assault against the entrenched online bookseller is a bid to both claim a stake in the online book market and entice traditionally offline consumers to the world of online shopping.
It is unclear, however, how long privately held Buy.com can maintain the offer. The Aliso Viejo, California, company also sells a variety of products including software, electronics, music and DVDs.
Amazon derives a majority of its revenue from books, CDs and DVDs.
Stock in Amazon (AMZN), based in Seattle, dropped 7.77 percent to $16.15 in early trading Tuesday.