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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 227.35+0.3%Dec 19 9:30 AM EST

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To: jhg_in_kc who wrote (28076)11/24/1998 10:46:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
< Someone at AMZN has to do fulfillment and fulfillment costs currently exceeds gross
margins> Could you explain what fulfillment is please. I am not a merchant but an
English major. I thank you sir. An example would help.


jhg,

The costs of picking the book from the shelf or books, finding the correct size box, placing the book in the box, sealing the box, sorting for shipping, etc. The labor and materials used exceed gross margins. AMZN could do 10 trillion in business and lose more money that way. The customer at a brick and mortar store actually does the fulfillment for free. They choose their book and take it to the cashier who just rings it up and places it in an inexpensive bag.

Glenn
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