SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : AMAZON.COM RIDICULOUSLY OVERVALUED BY ANY MODEL (AMZN)
AMZN 244.22+9.6%Oct 31 9:30 AM EDT
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: NetBearHaffner who wrote (141)8/23/1998 3:58:00 PM
From: Kachina   of 182
 
There are flaws in this analysis, although the overall is pretty good.
1. The many net computer users are not at home. They are using their computers and i-net supplied by corporations. Ergo - free of that $60 charge.
2. Nobody does that calculation anyway for personal use. Do you factor in the cost of your phone service when you call an 800 number to order some product? No.
3. These services are banking on net/web TV and buyers lying on the couch. There is a company that does pretty well at this on TV now - moving merchandise. No?

That said, there is a much bigger flaw in the business model analysis that these Web TV saviour of net commerce (viz. Amazon) are betting on. The companies on TV that unload stuff do so with a "push-through" model. They find merchandise, often it is close-out stuff from bankruptcies, or else the side effect of some horrid arm-twisting by buyers from big chains like Macy's screwing over some Guatemalan businessman. (I am speaking from having been good friends with a guy who does closeout buying for a living.) Whatever - they have a profile of junk they can push. Maybe sometimes they put in an order direct to a manufacturer. But normally, they get it far below wholesale cost, often far below manufacturer's cost to manufacture.

Then, they dump in on their audience, hyping people into buying this stuff.

But Amazon and company are trying to cover against all players. (As was astutely pointed out by NetBearHaffner.) They haven't got a prayer in my humble opinion. No way can they do that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News