Tonight, Amazon sent an email to members of Amazon Associates letting them know about a new feature: Twitter integration. Basically, when you’re logged into your Associate account, you’ll see a new “Share on Twitter” button on your Site Stripe (a management toolbar along the top of the page). As you’d expect, clicking this button will prepare a tweet complete with a shortened URL to send out of all of your Twitter followers.

Here’s why this is interesting: As Amazon clearly notes at the end of its email (copied below), you will earn referral money for anyone that clicks on these links and buys a product. Obviously, links that bring in referral fees are nothing new, this has been going on with blogs for a long time. But Twitter users do love to click on links, so this feature could actually mean some real money for popular Twitter users with a massive following. And it’s yet another way that companies — and now even Twitter’s users — are making money off of Twitter, which Twitter won’t see a dime of (presumably, anyway).

Amazon earlier this morning announced the official closing of the acquisition of Zappos, a deal which we broke the news about back in July. Turns out the valuation of the online footwear and clothing retailer went up from the reported $928 million over the past few months too – thank you, stock market – and Zappos turns out to have been deemed worth a solid $1.2 billion by Jeff Bezos & co based on Friday’s closing price of $117.4 a share.

Amazon is launching “PayPhrase” a simple way to verify your account to speed up purchasing – a great move ahead of the holiday season when even more people than ever will be shopping online.

It’s simple stuff. You set up a unique phrase like “Axe Murderer” or “Car Lover” or “Honey I shrunk the kids” and tie it to a 4-digit PIN. This is linked to your Amazon account which, of course, is pre-loaded with your credit card and shipping address.

I do have to wonder what was so hard about entering an email address and password, but clearly Amazon’s psychological research unit thought “Fluffy Bunnies”, or some such, was going to be easier for the average Jane or Joe to remember.

Amazon has launched a hosted relational database service, Amazon RDS, as part of the suite available at AWS. The new service is a hosted MySQL database instance with the full capabilities and access rights as a normal self-hosted DB. As a hosted solution, the service has an ability to scale out across computational, memory and storage requirements while still being treated as a single db instance by the end user. Pricing stars at $0.11c per hour for the smallest scale specification, and is available now on the AWS site.

Amazon has just made their new Kindle for PC available for pre-order online, a move that turns almost any PC in the entire world into a fully-fledged ereader. The software comes on the heels of all of the big Win7 announcements today evens up the playing fields when it comes to PC-based ereaders.

Amazon has long had the Kindle but Barnes & Noble launched a PC ereader long before Amazon, putting them at a disadvantage. B&N also has versions of their reader for OS X, BlackBerry smartphones, and the iPhone/Touch.

If you load up the Internet Movie Database (IMDb) today, you’ll see a new logo commemorating its 19th birthday. Yes, that’s really old for the Internet. Google, by comparison, is 11. Meanwhile, Yahoo is 14. IMDb is so old in fact, that is pre-dates the first web browsers. How?

Founder Col Needham explains the history a bit in a birthday message today. IMDb was born on October 17, 1990 as a series of Unix shell scripts to let users search the USENET group, rec.arts.movies. It wasn’t called IMDb yet (that came four years later), but it was the beginning of being able to search for movie information on the Internet.

Wow. Amazon.com is now offering same day shipping – same day shipping — in seven major cities across the U.S. with more on the way in the near future. If you live in New York City, Philadelphia, Boston, Washington D.C., Baltimore, Las Vegas, or Seattle then you’re already in one of the same day delivery zones.

Google offered some more details on its upcoming digital book store earlier today at the Frankfurt Book Fair. Google plans on selling downloadable electronic books called Google Editions to any device with a browser.

Today, Google Books gives you the option to buy books you find there from other online retailers. But Google Editions will come directly from Google’s own yet-to-be-launched store. It will make 400,000 to 600,000 books available through agreements with publishers, who will get a cut of each book sold (about 63 percent if it is sold directly through Google, 45 percent if it is sold through an affiliate retailer, which would split the rest with Google similar to the AdSense model).

On stage at last year’s Le Web an argument broke out between co-founder Loic Le Meur and TechCrunch’s Michael Arrington over whether Europe was capable of producing a ‘big win’ Web company or whether Skype was, perhaps, just a one-hit wonder. Like heavyweight fighters, they traded some heavy blows in subsequent blog posts. But during the live on-stage Gilmour Gang, one company was mentioned by Le Meur which left the rest of the assembled staring blankly: Vente Privee.

Probably the reason it prompted such sideways looks, however, is that this is not a classic ‘web app’ startup, but an e-commerce hub. Vente Privee began in France in 2001, but has only recently become a powerhouse of the new wave in Europe: an online private sales club involving designer fashion brands, otherwise known in the fashion retail industry as the “overstock market”. Its success has lead to a bunch of clone sites, while Vente Privee itself is on target to hit €650m in turnonver globally this year. In other words Europe is not out to lunch – as Arrington put it – it is out to shop.

But Vente Privee’s success has now lead to a number of U.S. companies becoming very interested in either entering this world or expanding their operations. TechCrunch Europe thus understands, from some very well placed sources, that Gilt, Amazon and eBay are all actively looking at acquisitions in the European private shopping club space. The price for Vente Privee alone is being talked about in terms of a $1.5 billion sale. Some sources even put the figure at between $2 billion and $4 billion.

Last week doubleTwist, the media management software company with DVD Jon as its CTO, released a remake of Apple’s classic 1984 commercial featuring none other than Steve Jobs as a malevolent dictator. The commercial closed with a promise. “On October 6th, doubleTwist brings you Choice“.

Today, doubleTwist has revealed what it means by that: doubleTwist now includes an integrated Music Store, powered by Amazon’s MP3 Store. But unlike iTunes, this app will let you transfer your files to non-Apple devices. The store includes Amazon’s catalog of over 5 million songs, allowing users to purchase songs either as albums or individual tracks (there’s also plenty of free songs available). From a design standpoint, it’s clear that iTunes served as a big inspiration — if you’ve ever used the iTunes Store before, it will take you all of thirty seconds to figure out how to use this one.

Bezos may have apologized, but the stink of Amazon’s unprecedented act of cyberburglary is still strong enough that people aren’t likely to forget any time soon. It’s a good thing, then, that Amazon has struck while the iron is still slightly hot by announcing the terms under which they will consider themselves justified in making your book an unbook.

Nobody likes the idea of having a corporation forcefully take back something they legitimately purchased (whether it was legitimately offered is not their concern), but the truth is that e-books and other “virtual property” will have to be subject to some of the same laws and restrictions as real property. I can’t think of many situations where the police would be justified in entering my house and removing an item I had purchased, without my consent, but that’s what judges and warrants are for. Amazon is, for the most part, its own judge (and extraction team), but they haven’t left too many doors open for more Orwellian tomfoolery.

Soft-spoken Zappos CEO Tony Hsieh had some surprisingly harsh criticism for the TC50 companies he saw today: Why aren’t you trying to change the world? I asked him more about that in our backstage sidestage interview during the TC50 cocktail party. “To be fair, is selling shoes changing the world?” I asked. Watch the clip after the jump to hear his answer.

I pressed Hsieh on details about his relationship with Jeff Bezos and Amazon. He can’t really comment because the US Justice Department hasn’t yet ruled on the deal, but he did admit “I’ve always thought Jeff was a lovely man.” So that’s how it works in that soon-to-be corporate family.

The most interesting admission may be his advice for start-ups: Do you really need venture capital?

Eventually, it’s probably safe to assume that all electronics will be in some way connected to the Internet. As long as you’re not worried about a Skynet-style Terminator apocalyptic future, that’s probably a good thing. With that in mind, the online gaming network SGN began working on a secret project to connect children’s toys to the Internet. Today, ToyBots is being unveiled at TechCrunch50.

Basically, the ToyBots’ vision is to be the platform that any toy maker can use to make sure their devices have a portal to the Internet, and all the data potential that comes with it. SGN and ToyBots founder Shervin Pishevar describes the key idea as a “Kindle of toys” or an “iPhone inside of a toy.” The thought there being that the Kindle works so well because of the network behind it that allows the device to seamlessly connect to Amazon’s extensive collection of books. Likewise, ToyBots is announcing a partnership with a major telecom provider (they’ll announce in the next week or so) that will allow toy makers to set up pre-paid service for their toys (that is, have wireless costs baked into the product, like the Kindle, rather than making customers pay a monthly fee).

Amazon is making good after killing copies of 1984 for the Kindle. As you recall, Amazon had to recall the electronic version of the book for copyright reasons.

Purchasers will receive a copy of the book for the Kindle or $30 in credit for Amazon products or a check. So either you can get one book or cash for two or more books.

Giz has the full text of emails being sent to folks who bought the book:

Hello,

On July 23, 2009, Jeff Bezos, our Founder and CEO, made the following apology to our customers:

“This is an apology for the way we previously handled illegally sold copies of 1984 and other novels on Kindle. Our “solution” to the problem was stupid, thoughtless, and painfully out of line with our principles. It is wholly self-inflicted, and we deserve the criticism we’ve received. We will use the scar tissue from this painful mistake to help make better decisions going forward, ones that match our mission.

When you are coming from behind, embracing openness is always a good strategy. That is exactly what Sony is doing with its electronic book reader, which is up against the Amazon Kindle. The key to the Kindle’s success is that it is paired with the largest book store in the world, where most people likely to buy an electronic book already have accounts.

Sony is trying to fight this advantage by being more open and thereby attracting other large players into its sphere of influence. Its biggest ally in this fight is Google, whose M.O. is to attack closed industries with open technologies. Today, Google is making available more than one million public domain books in the open ePub format, which also happens to be the linchpin of Sony’s open strategy.

Yesterday, at the unveiling of Sony’s latest electronic book reader at the New York Public Library, the head of its ebook division, Steve Haber, emphasized: “”You want a ubiquitous experience: open, open open.” He repeated the mantra in the way that Steve Ballmer says, “Developers, developers, developers,” except he said it a little softer since he was in a library.

Wanna extend your existing IT infrastructure to the cloud? Amazon can help.

Amazon Web Services is today announcing the limited public beta of Virtual Private Cloud (aka Amazon VPC), a service that essentially makes it possible for customers to create their own logically isolated set of Amazon EC2 instances to connect to their existing network over a secured VPN connection. That means Amazon Web Services is taking a major step in making its cloud computing services even more enterprise-friendly than they already were.

Amazon CTO Werner Vogels has published a lengthy but read-worthy blog post for the occasion, in which he acknowledges that enterprises tend to find it challenging to transition applications and services to the cloud when they have often invested years of resources and tons of money setting up their own IT infrastructure (datacenters, networks, etc.).

There’s lots of speculation out there on the yet-to-be-closed MySpace acquisition of iLike that we first reported on Monday.

Much of that speculation is factually incorrect, we’ve confirmed from a source close the the deal. iLike, which has been profitable for over a year, had multiple offers to be acquired.

Our source says that, in addition to MySpace’s offer, both Facebook and Amazon submitted bona fide written offers to buy the company. At least one other large company expressed interest to Allen & Company, iLike’s advisors to the deal.

Activision Blizzard and Microsoft have been incorrectly rumored to have been seriously interested in the company, however.

When Amazon paid $928 million for Zappos in July, it got a little something extra in the box: the Clothes.com domain. It turns out that Zappos bought the domain last year from Idealab for $4.9 million (Bill Gross strikes again).

The detail is tucked away in Amazon’s SEC filing about its acquisition of Zappos:

Most of the public Internet companies have reported their second quarter earnings by now. In a research note sent out to clients today, J.P. Morgan provides a few takeaways from the quarter. We already know that the recession continues in overall online advertising (see chart), but even normally-strong search revenue was down. And display advertising shows “no signs of recovery.” Travel, finance, and entertainment remain especially weak advertising sectors.

But even in a down market there can be winners. Both Google and Amazon gained share in search and e-commerce revenues, respectively. Google now commands 72.3 percent of all search revenues, according to J.P. Morgan. Online travel sites are also benefiting from the weak economy, with hotels giving them more inventory.

Here are some key takeaways from the note:

The global rise of Facebook is nothing less than astounding. In the month of June alone it gained 24 million unique visitors worldwide, compared to the month before, for a total of 340 million unique visitors worldwide. It is now the fourth largest site in the world, trailing only Google, Microsoft, and Yahoo sites, according to comScore (see table below). Facebook itself only officially acknowledges 250 million active registered users (but you don’t have to be a registered user to visit some Facebook pages).

In the past year, it has grown 157 percent, gaining 208 million visitors. It long ago passed its rival MySpace on a global basis, way back in April, 2008. Since then, it has passing even bigger sites on its way up. In the chart above, the blue line is Facebook. It passed Amazon back in August, 2008. eBay fell by the wayside in January, 2009. It surged past AOL sometime in February, 2009, and just last month it finally passed the Wikimedia Foundation sites (which includes Wikipedia).