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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 247.97-0.5%9:52 AM EST
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To: microhoogle! who wrote (118892)2/28/2001 6:54:58 PM
From: Glenn D. Rudolph  Read Replies (3) of 164684
 
My argument is that AMZN is not gonna fold. While it has been poor at making profit, it has built up a critical mass of users who will be very valuable to the likes of either Walmart or AOL.

Murali,

This is not accurate. It was made clear during the conference call after Q4 2000 that Amazon had only 17 million "active customers". this is world wide and most of the overseas store have only recently opened so any customers there or most, call into active during that prior 12 months. Amazon likes to use a cumulative customer count which according them, is 30 million. This means that 13 million customers became inactive in Amazon's short time relatively speaking of operating. That is a 43% attrition rate and that was at a time that the growth is on-line shopping was soaring. I believe it is still soaring but the new customers are shopping at Penneys online, Wal-Mart on-line, Bluelight, etc. This accounts for the very slowed growth rate of Amazon.

So let's take that 17 million active customer number and use it since it is the best we have at the moment. On a world wide basis, what retailer do you know of that only has 17 million active customers? Also, do you know of of any retailer still in business that has a 43% customer attrition rate?

Glenn
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