Amazon.com, Inc. (AMZN) Message Board

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

AMZN 246.42

-0.4%

Jan 12 3:59 PM EST

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To: Bill Harmond who wrote (17829)	9/22/1998 2:28:00 PM
From: IceShark	Read Replies (2) of 164684

William, Negative inventory carry is a one shot boost, usually never lasts for long before suppliers deal with it, and in AMZN's case is a misnomer of sorts due to the credit card fees on 100% of sales and shipping. I'm not sure what sort of deal AMZN has cut with the card companies, but the fee is 1.5% to 3% or so, pretty steep for say a 45 day credit term. It is a benefit, but not anything amazing. Wait till the States put 'em in their sights on sales tax, actually use tax. Given AMZN's high profile and supposed great computer systems, this might come sooner than anyone thinks. Then AMZN is a dead duck since another 6 to 7% cost will kill 'em. As they move to their own distribution facilities, this will move costs up, too. Not that anyone is smart enough to figure out any of this outside of the good buzzword "negative inventory carry". Regards, IS

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