Amazon.com, Inc. (AMZN) Message Board

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

AMZN 227.03

+0.1%

10:56 AM EST

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To: Skeeter Bug who wrote (120120)	3/11/2001 5:04:21 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

are you serious? even ex the debt and they can only be a marginally profitable company. the internet dynamics drive down profit margins - low price w/ acceptable service wins. SB, We both agree on the conclusion but not at its arrival. The net is not really cutting profit margins that much but rather the retailers are permitting it. Most of the retailers do not have people with adequate retailing experience. The problem is, which you and I really agree on, the gross margins are inadequate. I have saying this for years and will stick to it. For an on-line retailer of product not service, to turn a profit, gross margins must be higher than in the BM counterparts. The reason is the fulfillment is done by company employees and not by the customer themselves that do the fulfillment for free.

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