"Let me ask you this? If you had the opportunity to sell Books,
Cd's, any commodities to Asia,Latin America,Russia,or Mexico @ no
profit!
Wouldn't you rather sell them groceries @ a small profit?
Why are you so concerned about Amzn's stock price, when the poor
Russians are starving?"
Isn't their gross profit actually still in the black? Please tell me
if I'm wrong, because I'm just learning this stuff:
Quarter Ended June 30 Six Months Ended June 30
1998 1997 1998 1997
(Unaudited) (Unaudited)
Net sales $115,977 $27,855 $203,352 $43,860
Cost of sales 89,786 22,633 157,840 35,117
Gross profit 26,191 5,222 45,512 8,743
This is the definition of Gross Profit Margin from Yahoo's glossary:
"Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar
left over after paying for the cost of goods sold."
Looks right to say that if they can even keep their gross margins
flat from here, they have room for substantial profit. It's
interesting that when I bring up amazon.com as an option for people
shopping for books and CD's, they've very frequently already heard
of the place. IMHO, only the substantially price-sensitive will
hesitate to shop there. ShopBots could change the price-sensitivity,
but only if shipping becomes negligible for the person, so their
choice is clear.
Randy |
