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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: Glenn D. Rudolph who wrote (33998)	1/10/1999 6:44:00 PM
From: Jack T. Pearson	Read Replies (1) of 164684

I understand what you are saying about buying a few books at a time, but other companies have found it highly profitable to get product "just in time." They negotiate price based on quarterly or annual volume. So I don't think Amazon pays the same price for ten copies of a book that you would if you are a small book store. The trouble with inventory is that you have to pay for space to store it and systems to manage it. You also have to dispose of inventory no one wants at a loss or ship it back to the publisher--both of which hurt the bottom line. Books lose value sitting in inventory just like computers do. I'll bet 40% of the books printed are dumped.

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