Amazon.com, Inc. (AMZN) Message Board

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

AMZN 232.88

-0.8%

3:59 PM EST

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To: Bill Harmond who wrote (57130)	5/17/1999 5:27:00 PM
From: Bearded One	Read Replies (2) of 164684

Glenn, If sales are increasing 300%, it's ok to have inventories grow 300%. So far Amazon has managed their business with inventories at 3% of run-rate. Any other retailers you know do that?? Let's turn this around. Let's assume that Amazon is as efficient as you claim. That just means that they can't lower operating costs in the future due to increased efficiency. So they're going to have to figure out another way to actually have earnings. Maybe they should raise prices on their books? Oops, can't do that. They've got to lower prices to keep people from using alternative websites. Anyone remember the original promise of the internet as the middleman killer? Amazon sure looks like a middleman to me right now.

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