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

AMZN 230.12

+1.8%

1:52 PM EST

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To: i-node who wrote (89261)	1/1/2000 3:34:00 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

David, I do not wish to continue beating a dead horse but I have one simple question. Let me first preface by stating that the cost of fulfillment at Amazon in exceeds gross margins. I have made long and involved posts as to how that will always be the case. Thus far, my argument hold even as Amazon is approaching $2 billion in revenue per year. My question is how is Amazon going to be able to have gross margins exceed the cost of fulfillment? A simple explanation will do. Thank you. Glenn

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