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

AMZN 247.35

+0.4%

Jan 9 9:30 AM EST

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To: Jack T. Pearson who wrote (33947)	1/10/1999 9:49:00 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

Barnes vs Amazon: Do you know anything about the inventory turns? Jack, AMZN turns inventory four times as fast as does BKS but at a loss. The reason is much of AMZN's inventory is still costing them more because they are buying from wholesales a few books at a time and having them dropped shipped. The cost os goods sold is 9% higher when dropped shipped. BKS knew this because they understand retail so their very first move was to open a large distribution center for online sales and to inventory those books that turn the fastest. They even advertise that they carry more inventory. BKS did not need to lose hundreds of millions of dollars from their online sales to discover carrying the inventory works better than just turn. I believe that comes from the fact BKS knows and understands retail and AMZN still has no clue about retail. BKS trys to provide a return on invested capital to their investors. A novel idea don't you think? Glenn

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