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

AMZN 239.06

+0.4%

Jan 16 3:59 PM EST

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To: Glenn D. Rudolph who wrote (89882)	1/5/2000 7:45:00 PM
From: JayPC	Read Replies (1) of 164684

Hi Glenn While I agree, that the markdown will not be a one time cost, It will be a smaller markdown, as Amazon goes up the learning curve on electronics and toys. As far as projecting inventory needs, when you first opened your business, how did you do it? What if you were the first jewelry store ever? Would you stock more jewelry just in case? How would you project sales? My point is, I think its too early to fail Amazon on their inventory plan. This really is uncharted territory. They will have projection models and the projections should become more accurate over time. It's obvious that you know your stuff when it comes to retailing. You've made a good point about markdowns. I'll have to think about that a little more The "magic" right now is that Amazon is the biggest. I do agree however, what good is the magic if it doesn't make you any money? I'm willing to wait a few more years before reaching a verdict on the business plan. Regards Jay

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