Amazon.com, Inc. (AMZN) Message Board

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

AMZN 234.70

-1.2%

Nov 14 9:30 AM EST

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To: Glenn D. Rudolph who wrote (34037)	1/10/1999 1:57:00 PM
From: getgo234	Read Replies (1) of 164684

Glenn and others: It appears that the dollar amount for the typical order in the fourth quarter was fifty dollars. I surmise that the shipping and handling cost for this typical shipment would be five dollars based on two books at standard shipping rates. Therefore, approximately 10% of AMZN's revenues are shipping and handling costs which I assume provide little or nothing to profits. In the case of single book orders the shipping and handling costs could run as high as fifteen to twenty percent of the sale. In summary, it appears to me that everyone is overstating the sale of merchandise figures for AMAZ by 10% or possibly more. Finally, any guesses why Wall Street was so conservative in estimating 4th qtr revenues for AMZN given that the retailing industry expects very strong sales in the final quarter of the year ?

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