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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 243.53+0.2%3:09 PM EST

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To: Wizard who wrote (92923)2/3/2000 3:26:00 PM
From: Greater Fool  Read Replies (1) of 164684
 
Companies give up favorable terms by stretching out their payables. It costs to do that. Companies typically do it to conserve cash when that's an issue. As Amazon is "new economy" I rather see them negotiating terms with suppliers that provide a discount for immediate payment, which they're able to do and track because their logistics are world class.

On that topic, I guess they are crediting their world-class logistics and distribution for their inventory writeoff.

I would hardly call comparison-shopping consumers -- willing to compare prices at different online vendors -- a "niche". Rather, I would call the consumers uninterested in comparison shopping the niche, which will have to be a hell of a big niche for Amazon to grow into.

Clearly I'm a skeptic, but as I always say, what do I know? My wife buys stuff from Amazon even though the prices are better elsewhere. She doesn't really give a crap what the prices are, as long as they are reasonable. But bargain hunting is addictive, and it holds formidable power. The retailers that hold a powerful brand do so by creating a seductive shopping experience: soft music, very attractive displays, sexy and friendly salespeople. A whole seductive sensory experience which I have a hard time imagining the online retailers duplicating.
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