Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Randy Ellingson who wrote (87077)	12/10/1999 10:16:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Do you think that, for the sake of the health of the company and the stock, they essentially have to provide some evidence of a move toward profitability during calendar 2000? Or do you think they could "succeed" with increasing losses for another whole year? Randy, I believe we may not have the same definition of succeed. I do believe the stock price will hold up fine without moving towards profits in both calendar and fiscal year 2000. There may be a problem with the stock if losses increase further. My prediction is the firm will never turn a profit based on the environment of a online store only. It is my belief at this point that a retailer must have both a an online presence and a brick and mortar presence. Any without both, will more than likely fail. My small experience of putting a very small part of my store online has helped me understand the concept better. I want it clear I am not comparing my site to Amazon since that would be rediculous. I do want to point out that it has become a productive site since it is an inexpensive way of advertising to my customers, educating them if necessary and communicating with them. Some will shop online but most still seem to come into the store. Often the site drives them to come into the store. Convenience and service is the key here. The customer can view items at my site, ask questions via email, see current promotions and buy online if they desire. The online purchase can later be followed up with proper fitting meaning sizing, repairing damage if necessary, etc. Finally, the online site provides convenience. We sold eight gift certificates online today thus far that may be redeemed in the physical store or online. It is snowing here so many people would prefer to make their purchase from the comfort of their home. Lastly, gift certificates are available as a last minute item. I see this trend occurring with toys in that toysrus will do well online once they perfect their site. Wal-mart is doing their share and their site is not yet up to snuff. Macys does an excellent business online. If my competitors in my local market do not get online soon, they will be really hurting. I will be able to cut my advertising budget by 30% within two years once people in my market are familiar enough with my site. I can convery my promotions online which costs me next to nothing more and people will return to see what is new. Many customers request to be notified of our next sale and that is vitually free online via email. I see most of my compeitors stagnating except for the large chains that have sites such as Zales. The independants do not understand the technology and are continuing to pursue a physical store only approach. Our sales are up 41% now year over year. That is a record for us and a lot of that increase has come from the online effort. The actual sales were not made online as much as coupons for extra discounts and new promotions have been made available to the local market via the online site. I got a little involved here but in summation, the customer wants both physical and online service. I believe that will be true in almost all retail categories except pure commodity products such as books, music, etc. By the way, the online site has cut my gross margins by 6%. This is way offset by the increase sales. Glenn