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

AMZN 229.12

-0.2%

Nov 26 3:59 PM EST

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To: Glenn D. Rudolph who wrote (23880)	10/30/1998 12:26:00 PM
From: Sam Citron	Read Replies (2) of 164684

Competition from Wal-Mart! Briefing reports: "Wal-Mart.com offering steeper discounts on many titles that Amazon and for the month of October company pays for shipping. Let the pricing (i.e. margin) wars begin." Briefing does not mention that Wal-Mart sales tax might mitigate shipping discount a customer might receive. But Wal-Mart is just getting started in online commerce so who knows what's ahead. Maybe they want to teach AMZN a lesson for taking their personnel. Query: Why doesn't Wal-Mart operate its online venture as a separate subsidiary under another name? Wouldn't that enable them to sell online without charging customers a sales tax (because the company would have no "substantial presence", i.e., stores, in the state of purchase)? SC

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