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a hard know to think.

29 Jul 2003

amazon gift certificates expire.

We're not the only ones to have let an Amazon gift certificate slip past its expiration date. There is legislation in some states to make this illegal, but not in ours. Why is Amazon committing such an obviously bad customer service mistake? I agree with the person who wrote in the link, that it is to falsely inflate their profits. Gift certificate expiration is a ripoff, but I've never had a business refuse to extend the date, until now.

Amazon just lost a lot of business from us, though it will take us a while to make up the amount they already stole.

Posted at 9:17 AM in category observantics.
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It's called "breakage" and it's really nothing new. It's what every company hopes for when they issue any cash equivalent. Even public transportation that uses a disposable card (like DC) is HOPING that you lose the card...it's free money to them. It sucks, but it's big business accounting. Believe me, breakage is figured into profit margin estimates long before a gift certificate is issued.

Posted by: Justin on 29 Jul 2003 at 5:00 PM

Just because it's common practice doesn't mean it's right. I understand about the mass transit card, because they're issued in an unaccountable way (probably purposefully), but like I said, I don't think it's good business sense for a retail company. Amazon should take note that other retail establishments do not follow this practice.

Posted by: Kate on 29 Jul 2003 at 5:24 PM

Is this a sign that you should pick up and move to sunny, gift-certificate-extending California?

Posted by: Millie on 29 Jul 2003 at 5:52 PM

Speaking of which...

"Come to sunny California, where the weather is fine and anyone can be governor."

Tourism's gonna soar. Seriously, though.

Posted by: joe on 30 Jul 2003 at 9:51 PM

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