Please ensure Javascript is enabled for purposes of website accessibility

You Won't Believe What Amazon's Giving Away

By Rick Munarriz – Updated Apr 6, 2017 at 2:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're a real-world book lover, Amazon may have a deal for you.

Old-school book readers are facing a new worm on the hook to bait them into crossing the digital divide.

TechCrunch's Jason Kincaid has unearthed a targeted Amazon.com (NASDAQ:AMZN) promotion that offers select customers a shiny new Kindle with a money-back guarantee if they don't love it. The meaty morsel here is that recipients can keep the $259 e-book reader, even if they ask for their money back.

Now, before you begin thinking that the leading online retailer has gone off the deep end, let's break down why this is a brilliant move by Amazon.

  • The offer, apparently, is only going out to folks who purchased a lot of physical books from Amazon.com last year. In other words, Amazon is hoping to replace the typically subsidized shipping of marked-down books with higher-margin reads that it can deliver digitally.
  • Despite the temptation of asking for a complete refund, I'm guessing that most of these loyal Amazon customers would feel wrong about requesting their money back -- yet the generous offer of checking it out will be difficult to refuse.
  • Targeting only frequent readers should result in a heavy volume of purchases for e-books and digital newspaper and magazine subscriptions, even by those who decide to keep their "unloved" Kindles for free.

In a nutshell, it's a brilliant campaign in a desperate disguise. It's probably not a coincidence that the promotion ends on Monday night -- just two days before Apple (NASDAQ:AAPL) is expected to introduce its game-changing tablet computer.

The Kindle maker has been able to fend off Sony (NYSE:SNE), Barnes & Noble (NYSE:BKS), and smaller e-book competitors in the quest for e-book reader supremacy, but Apple walks on e-Ink-less water.

Amazon has been moving aggressively as the clock counts down toward Apple's announcement. It went as far as offering free overnight shipping for orders placed the day before Christmas Eve. Earlier this week, it nearly doubled the royalty to e-book authors and publishers -- probably tripping up Apple in its own negotiations with book and newspaper companies.

We have yet to establish the ceiling on e-books. Are the days numbered for real-world booksellers Barnes & Noble, Borders Group (NYSE:BGP), and Books-A-Million (NASDAQ:BAMM)? Probably not, but Amazon is clearly aiming to migrate the most voracious of bibliophiles to its digital platform. Just as Sirius XM Radio (NASDAQ:SIRI) is sucking out the most avid -- and desirable, by advertiser standards -- radio fans from terrestrial stations, Amazon's goal is to make your local Borders a barren wasteland of casual readers who will leaf through fresh magazines and best-sellers without buying them.

Is Amazon.com crazy for seemingly giving away Kindles over the next few days? No. It knows exactly who it has in its crosshairs, and what they're collectively worth on its mantle.

Did you get Amazon's money-back offer? Share your experiences in the comments box below.

Amazon.com and Apple are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days.  

Longtime Fool contributor Rick Munarriz has been a Kindle owner since 2008. He's also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. Rick doesn't own shares in any of the companies in this story. The Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.78 (-3.01%) $-3.53
Sirius XM Holdings Inc. Stock Quote
Sirius XM Holdings Inc.
SIRI
$5.81 (-1.02%) $0.06
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
Barnes & Noble, Inc. Stock Quote
Barnes & Noble, Inc.
BKS
Sony Corporation Stock Quote
Sony Corporation
SONY
$68.43 (-1.37%) $0.95
Borders Group, Inc. Stock Quote
Borders Group, Inc.
BGPIQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.