Amazon took a dramatic Q2 hit as operating income declined from $104 million in Q2 2005 to $47 million this quarter in 2006 . I guess the marketing strategy of offered free shipping and lower prices in response to heightened competition didn’t do it for Amazon. They better come up with another strategy fast, as competition won’t be waiting around to see what they do to fix their problem. If your thinking about ordering online from Amazon to get the free delivery, do it now, I think the shipping and handling costs could return quickly.