Do you ever find something wrong with Amazon?
Sure, but it's difficult for me to point them out before you guys do -- why would I rehash what's repeated several times already. E.g., (as you pointed out) their investments in co-e-tailers have returned dismally so far, and they could have done better spending more money on their very own customer acquisitions, or so it would seem.
Electronics are not a high margin product. To throw in a $15 cost to ship when one could get revenue for the shipping that exceeds the cost of shipping, is a sign of panic.
Come on, Glenn. A sign of panic? You're assuming the market is pretty dense here, since there's been no sign of panic selling the past week or so, outside any ordinary ability to fluctuate.
I guess you assume there's no sales growth rate that would permit the survivability of Amazon, but in general will they do themselves great harm to offer Free Shipping for what could potentially amount to a third of their holiday sales? Is the policy worthy of a panic?
This company has never executed well. I am not sure what the big deal is about being able to sell a $1 for 90 cents.
This I do not understand. When they have gross margins of 26%, what makes you think they're giving away the store? BTW, can you compare and contrast and other "diversified" etailer wrt to gross margins and especially net margins, and show that Amazon is doing poorly in a particular aspect of their business? Is there an inherent problem with their distribution system, or do you feel their primary enemy is their substantial debt at this point?
Randy |
