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Amazon Auctions Offers Placements On Home Page Starting At Five Cents

SEATTLE--May 8, 2000--

Company Launches Bid for Featured

Placement, Allowing Sellers to Better Merchandise Auctions to

Amazon.com's 20 Million Customers

Amazon Auctions (www.amazon.com/auctions), the most trusted auction site on the Web and ranked number one in Gomez Advisors' customer confidence scorecard, introduced Bid for Featured Placement, a new merchandising tool for its online Auctions and zShops sellers.

Instead of flat fees for promotional placements, Amazon Auctions' Bid for Featured Placement gives sellers the opportunity to determine their items' placements based on the amount they are willing to pay per day. A minimum participation fee of five cents per day, per level allows sellers to bid for the Auctions home page, the browse-all-categories page, or in the appropriate category levels of their choice. Bid for Featured Placement is the latest addition to a comprehensive set of merchandising tools that Amazon Auctions offers its Auctions and zShops sellers, helping them effectively reach the company's customer base of 20 million customers.

Due to the industry's rapid growth, major online auction sites have become increasingly crowded. These days, Amazon Auctions and zShops, eBay, and Yahoo Auctions have several million items for sale at any given time. The fast formation of these marketplaces has left many in the dark, buried among thousands of other sellers, because premium merchandizing options are not flexible or affordable. Despite these problems, Amazon.com has found through internal research that sellers who feature their auctions on its site sell on average over 60% more than those who do not.

Bid for Featured Placement is a low-cost, flexible merchandizing tool. Sellers can increase their bids at any time by any amount to stay in the most prominent place. The more they bid, the higher their placement appears in the category listings, on the Auctions home Page, or on search results. When sellers use Bid for Featured Placement, Amazon will highlight their listing with an eye-catching Featured icon.

"With millions of items for sale on each of the three major online marketplaces today, it is increasingly difficult for sellers to affordably get in front of buyers," said Jeff Blackburn, general manager, Amazon Auctions. "Bid for Featured Placement provides sellers a flexible, low-cost tool to target the 20 million potential bidders who shop at Amazon.com. We expect users to see significant sales gains."

Amazon Auctions has the auction industry's most robust set of promotional tools for online customers. Internal research shows that sellers who take advantage of these tools sell more merchandise, attract more bids, and achieve higher prices. Some of these tools include:

       --  Featured Placements: Items featured on the Amazon Auctions
            home page or on category pages sell 60% better than those
            that aren't. --Old Cost: $99.95 (home page) and $14.95
            (category page) before Bid for Featured Placement. New
            Cost: as low as $0.05 per day to be featured.

       --  Bold Listings: Make the title of listings stand out from
            the crowd in search results and browse pages by posting it
            in boldface type. Seller's who use Bold Listings sell 30%
            better than those who don't. --Cost: $2.00 per listing.

       --  Amazon retail CrossLinks: Display listings to Amazon.com's
            20 million customers throughout its Books, Music, and
            DVD/Video stores. Sellers who use CrossLinks sell 20%
            better than those who don't. --Cost: free.

       --  First Bidder Discount: Entice bidders to bid early and
            often with 10% off the final price if they win the
            auction. Sellers who use First Bidder Discount sell 15%
            more than those who don't. --Cost: free.

       --  Amazon Payments with 1-Click: Allows any seller, once
            qualified, to accept credit cards via Amazon.com, and
            allows bidders to pay sellers with their preset 1-Click
            information. Over 70% of auctions listings at Amazon.com
            offer Amazon Payments. Sellers who use Amazon Payments
            sell more than 10% more than those who don't. --Cost:
            $0.25 cents plus 2.5% of the final transaction amount.

        Other notable free merchandising options for sellers include
     graphic images for linking to their listings from their personal
     Web sites, and personalized URLs for sending interested bidders
     to their Member Profile pages. Sellers can create their own URLs
     by simply placing their name at the end of this link:
     http://www.amazon.com/seller/milehighcomics (this example is the
     URL for Mile High Comics, one of the top sellers at Amazon
     Auctions)

   About Amazon.com

Amazon.com (Amazon.com, Inc., and its subsidiaries) is the Internet's No. 1 music, No. 1 DVD and video, and No. 1 book retailer. Amazon.com (Nasdaq:AMZN) opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com lists more than 18 million unique items in categories including books, CDs, toys, electronics, videos, DVDs, home improvement products, software, and video games. Through Amazon.com zShops, any business or individual can sell virtually anything to Amazon.com's more than 20 million customers, and with Amazon.com Payments, any seller can accept credit card transactions, avoiding the hassles of offline payments. The company also participates in sothebys.amazon.com, the leading auction site for guaranteed art, jewelry, and collectibles, at www.sothebys.amazon.com.

Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. Amazon.com's All Product Search scours the Web to help customers find merchandise that is not available at Amazon.com, Amazon.com Auctions, or Amazon.com zShops, making Amazon.com the shopping destination to find anything. Amazon.com Anywhere is the leader in mobile e-commerce, providing access from anywhere in the world to Amazon.com through hand-held wireless Internet devices that use the Wireless Application Protocol (www.amazon.com/phone/) and on personal digital assistants (PDAs).

Amazon.com operates two international Web sites: www.amazon.co.uk and www.amazon.de. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 220,000 movies and entertainment programs and 800,000 cast and crew members dating from the birth of film in 1892 to 2003.

Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: Greenlight.com, the only company that offers car buyers the control of auto purchasing online with ongoing service and support from local dealerships, at www.greenlight.com; living.com, the leading online home products and services retailer, at www.living.com; drugstore.com, an online retail and information source for health, beauty, wellness, personal care and pharmacy, at www.drugstore.com; Pets.com, the online leader for pet products, expert information, and services, at www.pets.com; HomeGrocer.com, the first fully integrated Internet grocery-shopping and home-delivery service -- with operations in Seattle; Portland, Oregon; and Southern California -- at www.homegrocer.com; Gear.com, which offers brand-name sporting goods at prices from 20 to 90 percent off retail, at www.gear.com; Ashford.com, the leading Internet retailer of luxury and premium products and the Web's No. 1 retailer of watches and jewelry, at www.ashford.com; Audible, Inc., the leader in Internet-delivered spoken audio for PC-based listening or playback on AudibleReady portable digital audio devices, at www.audible.com; eZiba.com, a leading online retailer of handcrafted products from around the world, at www.eziba.com; and WineShopper.com, the San Francisco- and Napa-based Internet start-up that will ultimately offer consumers online access to the largest selection of wines available anywhere, at www.wineshopper.com.

Amazon.com also has a minority interest in Della.com, which brings together leading retailers with gift registry, expert advice, and personalized gift suggestions to help everyone give better gifts, at www.della.com; NextCard, Inc., considered the industry's leading issuer of consumer credit on the Internet, at www.nextcard.com; and Kozmo.com, the world's leading "e-mmediate" Internet-to-door delivery service, at www.kozmo.com.

This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, anticipated losses, significant amount of indebtedness, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risk of distribution center expansion, risks related to fourth quarter performance, risks of system interruption, management of potential growth, inventory risks, risks related to auction and zShops services, risks related to fraud and Amazon.com Payments, and risks of new business areas, international expansion, business combinations, and strategic alliances. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1999.


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