In its second-largest acquisition, Amazon buys the company for $970 million.
Bombay’s new agreement with Amazon is part of Bombay’s multi-pronged online marketing approach that includes e-mailing its monthly free-standing newspaper inserts and catalogs.
The Bombay Co. Inc. this week launched a partnership with Amazon.com, and it’s just the start of the company’s expansion into marketing online channels, Matt Corey, vice president of online commerce, told the Shop.org Annual Summit meeting in New York Thursday. "This gives us the opportunity to reach out to new customers," Corey told the SRO Multichannel Marketing session.
The agreement is part of Bombay’s multi-pronged online marketing approach that includes e-mailing its monthly free-standing newspaper inserts and catalogs. "We will significantly expand marketing in the coming year by e-mailing more FSIs and catalogs and establishing more relationships like the one with Amazon," he said.
Corey said Bombay’s goal is to expand its online sales by three to four times by 2006 while the company is doubling its overall sales. "Long-term, the direct business is just getting going for Bombay," Corey said.
A key component of Bombay’s growth has been the e-mailing of free-standing inserts. The first weekend of the mailing, online sales increased 60%. "And stores were calling and e-mailing us and telling us how great this was, especially in the markets that didn’t have FSIs in their local newspapers." Corey said. Bombay circulates the inserts in 20 markets and the e-mail allows the company to offer the FSI deals nationwide. Bombay uses e-mail technology from DS Retail Technologies.
It sends the electronic version of the FSI on the Friday before it hits the newspapers, under the belief that many people don’t check their e-mails over the weekend. It makes the deals available to recipients right away. They cost only pennies each, he said. Starting next year, the company plans to include Canada in its e-mail distribution.