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

AMZN 220.66

+1.6%

Nov 21 9:30 AM EST

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To: Greater Fool who wrote (54851)	5/3/1999 7:29:00 PM
From: Randy Ellingson	Read Replies (2) of 164684

I disagree. Branding has value when it results in people willingly paying more for similar items. To a limited extent people will shop Amazon because it's cool or because it's a recognized brand, but the internet makes it terribly easy for them to get the cool advice from Amazon and then go buy their books or whatever from buy.com or barnesandnoble.com or cheapbooks.com ... So is it fair to say that in your opinion as the Internet matures and people become more willing to, and capable of, shopping around, Amazon.com will eventually lose market share? Now I disagree. So far that view seems wrong, in the sense that Amazon continues to add customers and apparently keeps many of those it adds. The real number which is missing from their released data is the percentage of total customers (~8 million now, I believe) who made purchases during the past quarter. The one-stop shopping trip is the way to go; if people like shopping at Amazon.com, most of them will shop there. The scenario where the shopper balks at the price and goes elsewhere seems to be the exception. So far, the $1.2B run rate of revenues (something like $4.50 per person US resident) indicates that Amazon's name, service, and convenience are valued more than the lowest price by many people. Randy

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