In its second-largest acquisition, Amazon buys the company for $970 million.
E-business dynamic pricing services provider FairMarket Inc., reported a net loss of $51.3 million for 2000, but revenue per customer goes up.
FairMarket, a provider of online dynamic pricing strategies and services, reported a net loss for the year of $51.3 million on revenues of $11.9 million, a 460% increase from 1999, in line with its own forecast in January. The Woburn, Mass.-based company offers marketing solutions for large retailers and others that allow them to sell discount and clearance goods as well as conduct interactive marketing events on the web. “Clients are telling us that they are realizing a 40% to 50% improvement in their price yield, which improves their profitability,” says Eileen Rudden, president and CEO. The company’s recent focus on developing relationships with larger established companies drove average revenue per customer (excluding non-recurring business development revenues) up to $34,100 in the fourth quarter of 2000 from $32,100 in the third quarter, she adds. FairMarket, whose clients include JC Penney, Dell Computer and Excite@Home, among others, launched a professional services group in the fourth quarter to provide marketing and consulting services that analyzes customer data and provides strategic counsel on marketing and sales programs.