Amazon.com, Inc. (AMZN) Message Board

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

AMZN 235.24

+0.6%

11:48 AM EST

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To: Glenn D. Rudolph who wrote (29284)	12/8/1998 10:34:00 AM
From: H James Morris	Read Replies (5) of 164684

Glenn,<You will find that fulfillment costs exceeded gross margins. That is a fact.> You've always been right on that, and Bezos knows it. That's why he'll get out of being an online seller and become an online processor. His advertising costs will be mostly picked up by his merchants. I think he'll try to look like a combination of Visa/Mastercard and Fedex/post office of e-commerce. I must admit I'm surprised that his stock is not tanking today. By surrendering to other Merchants, investors should backing away, waiting to see if he can pull off Amazon.com business model # 4.

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