Amazon.com, Inc. (AMZN) Message Board

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

AMZN 229.75

+0.3%

11:28 AM EST

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To: Victor Lazlo who wrote (32877)	1/6/1999 9:15:00 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

I do not believe the line about aggressive pricing and discounts being part of the reason for their continued losses. I believe that: they simply cannot achieve economies of scale; that their costs are escalating well beyond the projections of their latest business model; and that they simply offer no benefits to the consumer that many other retailers do not have. Victor, It is not pricing. It has been pointed out on this thread that AMZN is typically not the lowest price. It goes back to my initial statement which will hold true forever. Gross margins do not exceed fulfillment costs, therefore until that occurs, profitability is impossible. There is no more economy of scale to be had in fulfillment and I doubt also in the cost of goods sold. FA is really not important here anymore. There is no correlation between the price of the stock and FA. I was short way back prior to the first split at $80. Now it is $900 based on that number and based on the open indication. It is time I move to an investment vehicle and out of the casino. Glenn

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