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Online retailer eCost announces this morning that it's launching a new membership club, Bargain Countdown Platinum, for $30 per year. Here's what you'll get: exclusive access to member-only products and pricing, a best-price guarantee, priority telephone support, and 10% off travel booked through eCost. Of note:
- Sounds like a similar program offered by Overstock, which itself sounds like club memberships from Costco and Sam's Club...
- Trend: online retailers try to lock-in customers with loyalty
programs. Comparison shopping engine Shopping.com now offers extra
discounts if you register for free. - Both eCost and Overstock are pushing their travel offerings.
(Travel requires no physical inventory and shipping, so it's profitable
and highly cash-flow generative.) Does online travel have lower
barriers to entry than people realize? If so, not good for Expedia,
Travelocity, Travelzoo, Priceline.
Full disclosure: At the time of writing I'm long SHOP.
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