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

AMZN 217.15

-2.5%

3:59 PM EST

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To: KeepItSimple who wrote (63530)	6/21/1999 11:25:00 AM
From: Lizzie Tudor	Read Replies (1) of 164684

Michelle, you amazingly managed to reply to my message without reading it. Let me make it clear for you: AT A CERTAIN DISTANCE, THE SHIPPING COSTS FOR HEAVY ITEMS ARE SO PROHIBATIVE THAT IT IS PERFECTLY LOGICAL TO HAVE A LOCAL FACTORY. It is you that do not understand. Shipping is a piece of the logistical nightmare with these goods - it is not the most imortant item it is only one of many things. The real problem is the stores don't want to stock anything and yet when they need it they need it. Therefore you need a regional warehouse which is costly... land and personnel. Add shipping to THAT and it doesn't make sense, so a regional plant is a better option - BUT IT IS NOT SHIPPING ALONE THAT DICTATES THIS DECISION Secondly shipping as a service has its problems with the curent one-bid shipper model but it is still true that the more shipping you do, the less you will pay so an e-tailer is going to have better rates and a different competitive landscape anyway

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