Amazon.com, Inc. (AMZN) Message Board

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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: JC Reddy who wrote (59273)	5/30/1999 7:31:00 PM
From: Lizzie Tudor	Read Replies (3) of 164684

Its a long discussion, but in simple terms logistics accounts for maybe 30% of the cost of any item you buy in a store, so if somebody uses technology to diminish that expense, they then can reduce prices and still remain profitable, while others go out of business (especially if it is a commodity item). The problem is it costs so much to get the automation up and running and there are a fair amount of risks. Also in Amazon's case they are spending excessively for advertising. All things being equal though, automated centralized factories will eventually put the old line out of business. But all things aren't equal as everyone here is aware.

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