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Non-Tech : FedEx (FDX)

FDX 262.11

+1.3%

Nov 7 9:30 AM EST

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To: Dayuhan who wrote (326)	2/16/1999 9:58:00 AM
From: Jacques Tootight	Read Replies (2) of 524

But businesses will be ordering from the net as well, and any way you slice it, there's going to be a lot of goods moving around the world. But are there going to be any more goods moving around the world? I'd be interested in your take on why you think that will increase the total amount of goods being moved. I agree that ultimately the vast majority of ecommerce will be business to business. I may be missing something, but I don't see how the method of purchasing increases the amount being purchased. Right now, regardless of how the purchase is made (phone, fax, mail) the goods are delivered to the customer. It doesn't seem that simply changing the method of placing a purchase order will have any effect on the method or amount of shipping. What am I missing? Even as regards etailing, I don't think there will be a huge boon for transportation. There are a lot of wild numbers being thrown around right now about the future of internet shopping and the demise of bricks and mortar stores. I don't buy into it. I think etailing will replace catalog shopping and maybe some small percentage increase. I think those who throw around the huge numbers don't know an awful lot about consumer psychology or "shoppers". Shoppers shop because they want to, not for convenience. The exact same arguments being made today for internet shopping were made years ago for catalog shopping. Even if internet shopping surpasses my expectations I don't see it helping transportation all that much. Residential deliveries are the least profitable of the business. Unless the rate structure is changed they are not going to add tremendously to the bottom line. Your comments are appreciated. RC

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