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

To: Bill Harmond who wrote (88007)	12/19/1999 6:48:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

>>big fast concept except it is not working. Not working in what respect? I believe we visit this about every six months<G> Scalability is suppose to kick in. Losses are suppose to become smaller and eventually change to profits. Do you see this happening? My argument from years ago was that fulfillment will and does exceed gross margin. Amazon spent millions on automated fulfillment center but they require a tremendous amount of employees?? As revenue increases, these centers will have more utilization but we are also going to see more emplyees still. Many more due to the fact the equipment cannot actually pack the box. In a real store, the customers does the fulfillment at no cost to the retailer. Online selling is different. Fulfillment is expensive and it will continue to exceed gross margins. That concept is proving itself with every quarter. Amazon is trying to get big fast so it can scale. How much revenue is big? What is the magic number necessary just to break even?