Amazon.com Incorporated has taken more than a million pre-orders for the final Harry Potter book due out in July, but according to Chief Executive Jeff Bezos, the world"s largest Web retailer won"t make a profit. Amazon"s handling of the "Harry Potter and the Deathly Hallows" release comes down to a $17 discount off cover price, a free shipping offer and guaranteed on-time delivery. The company is once again demonstrating that it is willing to take a hit to cement customer loyalty.
Amazon sacrifices $600 million in shipping revenue each year, thanks to the $79-a-year Amazon Prime free shipping membership available in the U.S. and Japan, and other shipping offers. "We are very focused on the long term, but we also believe that the long term has to eventually come," Bezos said. He noted that in the past, periods of intense investment started to pay off in five to seven years.