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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Glenn D. Rudolph who wrote (72520)8/7/1999 9:51:00 AM
From: Victor Lazlo  Read Replies (2) | Respond to of 164684
 
Glenn, I'll have to have my staff recheck those figs. <g>

Re repeat business, repeat customers order fewer items from amzn than do new customers; often just one item per order for repeat customers. This results (or was until recently if not still) in significantly more cost per revenue dollar to fulfill the order. (New customers placing their first order usually order several items due to the novelty of it). Kind of like portion control in a restraunt - people overlook it as a minor factor, but repeated thousands of times, it becomes a big factor.

If this continues to be the case, repeat customer businees is actually problematic for amzn.

Victor