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

AMZN 227.35

+0.3%

Dec 19 9:30 AM EST

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To: Alomex who wrote (120164)	3/11/2001 8:57:03 PM
From: Skeeter Bug	Read Replies (2) of 164684

>>Amazon saves money in not having to pay for prime retail locations as compared to a brick-and-mortar B&N, but it loses to some of that advantage from the cost of shipping.<< shipping is cheap. the real cost is transparent information available to the customer and ease of substitution. margins on the net will be less than 1/2 the margins of b&ms if they are lucky and good. when you have a customer in your store, they are likely to pay more b/c of convenience and gen'l ignorance of competitor prices. not so on the web. a couple "clicks" and you have more information than you could ever want. not good for business. great for consumer. the internet will eventually be a niche marketplace where a fraction of folks shop for convenience and price. i believe that niche is smaller than the current subsidized (sell a buck for 90 cents) revenues we see today. profits will be made. they will be small and revenues will shrink. can't shake a $10 billion market cap at that ;-)

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