Amazon is getting into photo printing.
On Wednesday, the online retail giant rolled out Amazon Prints, a service that lets users back up endless photos, videos and other files to Amazon’s servers and order photo prints, albums and possibly calendars. The response was swift as shares of Shutterfly, a leading image publishing service, fell more than 12% on the news, its worst single-day result since 2008. Some analysts believe it could be a overreaction, and Wall Street seems to agree with Shutterfly. the stock rebounded somewhat on Thursday.
Amazon Prints’ debut comes at the height of Shutterfly’s busiest time, when people start ordering cards for the holiday season. According to various media outlets, Shutterfly expects to generate around $1.15 billion in revenue this year. That sounds like a big number, but it’s only a drop in the ocean for Amazon and its $107 billion in reported revenue last year.
Photo storage is free for members of Amazon’s Prime subscription service, and for everyone else, it costs $59.99 per year. Photo books start at $19.99 and individual prints range from $0.09 for a four by six to $1.79 for an eight by 10. Soon customers will also be able to order personalized calendars and stationery on Amazon. For a limited time, all orders will include free shipping, and orders over $15 will include free expedited shipping.