Amazon.com, Inc. (AMZN) Message Board

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

AMZN 249.14

+0.3%

3:59 PM EST

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To: Glenn D. Rudolph who wrote (33896)	1/10/1999 10:41:00 AM
From: Bullitt	Read Replies (1) of 164684

Glenn, Your statements on the inferiority of AMZN's business model are flawed. 1. The costs of holding inventory for amzn is substantially lower than the brick & mortar costs of operating a retail store. With automation, they can fill an order almost without human intervention. That gives them a tremendous cost advantage. 2. Since internet sales are tax free, the consumer pays about the same for a purchase at amzn as at a store and amzn should make substantially more on the transaction. 3. As bandwith increases dramatically in the next three years, the richness of shopping on-line will grow allowing people to listen to CD's, etc. I think e-tailing will take over from catalogs and start to cut into in-person shopping sustantially for certain products. You are right that the valuation of amzn stock is crazy. I'm lucky to be one that bought a bunch in Feb 98, rode it for a year and sold last Fri. But I still believe strongly in the concept of e-tailing and amzn has a wonderful brand recognition.

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