Global recovery, Amazon, Dell, E*Trade, leverage, USA dominance.
I agree to. In the morning went to the local Global Mailbox office
(GMBE) in Santiago, Chile. They started a year ago. People can open in mailbox in Miami, order by Internet and get it delivered in 48 hours via Miami to their mailbox in Santiago.
In the past it was virtual impossible or just too expensive to get products from the States. Now the place was packed with magazines, Amazon.com mail cartons, golf sticks and a lot of other com.cartons or tubes.
I have access to the Chilean customs database. I ran a query on Dell computers. They initiated sales via the Internet to Latin America. Starting with deals for major businesses, using their premier pages. Without any publicity. And a local office of just 4 people.
The query showed that the first sales were in July last year. In March this year, they were selling at a 1 Million a month rate and got already to the number 5 spot of PC sales.
Aircargo is growing at a 30% rate per year. Air freight rate from Miami is US 1,50 per kilo. That will drop to US 1,00 in one year. The frequency of flights went up from once a day three years ago, to three times a day now.
I read an article on E-Commerce in Europe, a Dutch newspaper.
It stated that much investments in sites did not deliver up to expectations. In a footnote they mentioned that most sites did not have a 'buy button'.
Buying stocks in still in the hands of banks in many countries of the world. You pay between 100 and 200 dollars a trade. And the service is poor.
So, the perspective. iNet developments are 24 months ahead of Europe, 36 months ahead of other parts of the world. Months are years in the net calendar.
So keep your investments in the nets, don't watch to often the screen with your shares making another dive. Focus on sites who direct to an international audience. Paul Samuelson's 'law' of diminishing returns may have to be rewritten, as each additional customer creates bigger returns.
Amazon should build an international distribution structure, using consolidation of freight to hubs like GMBE to reduce shipping costs for customers. Then they can offer lower prices than start up net competitors.
E*Trade should improve infrastructure and reduce rates every quarter by 10%. As a result, the frequency of trades would go up faster than 10%. Small competitors would go out of business, not able to offer the same news and infrastructure.
Regards from a sunny Santiago,
Pareto |
