Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 245.07

+1.7%

1:14 PM EST

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To: Alomex who wrote (37225)	1/27/1999 5:08:00 PM
From: Paul Merriwether	of 164684

<< think so too. Even if they are currently selling each item at a loss, there is always the possibility that they could hike prices, like AOL did a while ago. >> AOL has a franchise. AMZN imho does not and can not. A retailer w/o any way to distinguish its wares is ultimately forced to become a commodity business. If run in a lean/mean way it could eke out a profit but is unlikely to be anything spectacular. This is especially true in a medium such as the internet where the ability to comparison shop with a bot is already very easy and is likeliest to get easier. Therefore the player with the lowest price and maximum would/should win out in the end. Obviously inventory management, good MIS and cost controls is key here. The concept of a "brand name" in such an environment is very very suspect(jmho).

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