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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 223.34-1.3%11:03 AM EST

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To: David Lee who wrote (27756)11/23/1998 10:08:00 AM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
I would completely disagree with your statement that Amazon's internet business model
is a failure. On the contrary it is the model to which many companies are trying to
emulate for electronic commerce. Much like all computer companies are trying to
emulate the DELL (virtually zero-inventory) model...


David,

Please explain to me why AMZN has decided to increase their inventory and why fulfillment costs exceeds gross margins? Let's not even address marketing and administrative cost. Fulfillment costs are variable. Economy of scale does not work there.

Please explain the way out of this problem.

Thank you.

Glenn
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