I have no idea if this is here:
IceGroup Releases Amazon.com Analysis
WAKEFIELD, Mass., Aug. 20 /PRNewswire/ -- IceGroup, Inc., Boston's premiere e-
business consulting firm has released a financial analysis of Amazon.com's
Q298 results entitled "Amazon.com: Prototype of a New Millenium Company?" The
white paper offers poignant lessons for executives contemplating the adoption
of electronic commerce into their businesses.
"Amazon.com is often identified as the benchmark for e-businesses to measure
themselves against," says Ron Ploof, Director Business Strategy for IceGroup.
"Although it has made tremendous strides, it still must address many issues
before it builds a viable business model."
HIGHLIGHTS FROM THE REPORT
-- At its present growth rate, Amazon.com must generate an annual revenue of
$1 Billion to simply break even.
-- Amazon.com's average cost per transaction is $40.81.
-- New customers spend 60% more per order than repeat customers
-- Amazon.com earns an average $8 per new customer and loses an average of
$10 per repeat customer.
The report illustrates how e-businesses must contemplate problems that
traditional businesses never had to worry about.
"Everybody knows that it is cheaper to keep an existing customer than to find
a new one, right? Not so fast," Ploof cautions. "It's dangerous to make this
assumption when dealing with e-customers, who assume that everything purchased
online should be cheaper than through a traditional storefront. The
assumption that doing business online is cheaper than doing business offline
is a fallacy today."
"The truth is that e-commerce is a logistical nightmare, creating costs that
dwarf those required to build technical infrastructure," says Jane Waller,
IceGroup's Director Business Processes. "Amazon.com has tacitly acknowledged
this fact with the appointment of Jimmy Wright to the newly formed position of
Chief Logistics Officer. Amazon.com is banking on the fact that Mr. Wright's
logistical experience with Wal-Mart will help squeeze significant costs out of
the average cost per transaction."
The complete report, "Amazon.com: Prototype of a New Millenium Company?" is
available for free download in PDF format from icegroup.com.
About IceGroup, Inc.
IceGroup, Inc. is an e-business consulting firm helping clients use their
electronic communications channels effectively. Focusing on the collaborative
requirements of business-to-business e-commerce, the company provides insight
and advice on technology adoption and its organizational impact. IceGroup is
located in Wakefield, Massachusetts, can be reached at 781-224-1550 or through
its web site located at icegroup.com. SOURCE IceGroup, Inc.
CO: IceGroup, Inc.
ST: Massachusetts
IN: CPR MLM PUB
SU:
08/20/98 08:39 EDT prnewswire.com
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