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

To: dbblg who wrote (84292)	11/16/1999 3:17:00 AM
From: Jerry A. Laska	Respond to of 164684

Ganesh, >>I asked someone at a big warehouse store about this in 97, and got the sense a lot of the fiefdoms understood this, though top management was still a little leery about the IT expenditure and, especially, potential for disruption. AMZN presumably scared them into line.<< I believe top management is finally getting it and they are making money as they get there. Costco has something else going for it also and that is B to B. Outside of large metropolitan areas, Costco acts like a wholesaler to small businesses in the area. For example, in my community all of the local grocery stores and restaurants purchase their meat(custom cut) from costco. A number of the local liquor stores purchase some of the brands of beer they carry there and almost all local businesses purchase their cigarettes for resale there. The local wholesalers are unable to complete on price with the retail price offered by costco.(Partially due to this competition, a local office supply store with two bricks and mortar retail outlets and substantial wholesale sales recently closed those stores and went totally to internet sales - providing same day delivery by their own trucks) Those B to B sales are done by phone and fax now and it appears they are moving to the internet. This mix of B to C and B to B and combination of lowcost bricks and mortar warehouses that act also as retail establishments makes for a fine model I believe. Also, as Amzn keeps adding warehouses to provide timely fulfillment they start to look more and more like warehouse stores. Actually I wouldn't be surprised to see Bezos in the next couple of years open up warehouse like stores or other Amzn bricks and mortar stores and be hailed as a genius. All imho of course. Jerry