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Amazon's Bezos: Online Sales Half-way to Maximum

In a Wired interview, Amazon chief Jeff Bezos dropped some interesting predictions. Among them were the estimate that online retail sales will top off at about 10 to 15 percent of all retail sales, a figure that has been half-way reached already in the U.S. "The vast majority of retailing will stay in the physical world because people have acute needs," said Bezos. "They want things now." He also commented on Amazon's dumping of television advertising. In testing the company found that once it had gained the brand position it enjoys - largely through word-of-mouth - it found a higher and more long-term effect on sales by putting the tens of millions of dollars that would have comprised a TV budget into lowering prices. Bezos said he thought this was a major trend that would likely continue, inverting what Bezos termed the average company's tendency to "put 70 percent of your energy into shouting about your service and 30 percent into making it great."

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