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

AMZN 220.66

+1.6%

Nov 21 9:30 AM EST

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To: Lizzie Tudor who wrote (84742)	11/21/1999 4:53:00 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

Glenn, I ordered a bunch of stuff from Amazon and it was delivered by UPS last week at 8:30 pm. So they are putting in heavy overtime already and it isn't even December. My order was in pick-release at Amazon for almost a day too, which is slow for them... but they still made the 3 day window (barely). Liz, Your experience and knowledge is exceptional about how shipping works. I have little or almost know real knowledge in this area. All the information I am mentioning is derived from discussion with the delivery and pick up people that come to my stores. These would be the "blue collar" (do not like that name) workers that physically move the products the last few miles. The typical UPS delivery person we have for the business is not any more overwhelmed with his business pick up and deliveries than in the past. However, once he completes business deleiveries, the company is now paying him overtime to make residential deliveries. The 8:30 PM is not unusual and as you said this is still November. The Fedex person does both business and residential as does the USPS people. Comments that struck me as a possible problem for december only are the USPS man indicated that he is carrying twice as many "feet" of mail compared to prior years. I did not know mail was measured in feet but apparently it is. His comment or "concern" is what happens if the quantity increases further? There are no larger deliver trucks for him to use and the truck is now almost full on a daily basis. In addition, he can make two trips from the main office if necessary but time becomes an issue becuase it takes longer now to deliver the double number of items much less backtracking to the main post office. The UPS people have also commented that their trucks have little remaining space as have the Fedex people. The point is simply additional capital expenditures are going to be needed by the shipping firms if this trend continues but it is not going to happen within the next month. Let's same Amazon executes perfectly in that you make an order and they ship it via UPS. However, UPS cannot fit it on their truck the day that delivery is expected and that time delay continues to increase. Does the customer become unenchanted with Amazon.com? I believe the customer will look at the end result and not focus on the fact Amazon.com did their part perfectly. Glenn

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