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


To: Victor Lazlo who wrote (89043)12/29/1999 11:31:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
Are you sure re their competitors? I assumed bookstores do the same thing as grocers- charge $$ from the suppliers
for best placement on their store shelves- ya know - eye level and all that!


This is true and I have no problems with the books had Amazon stuck to books. However, electronics firms do not take inventory back nor do they lease. The product becomes outdated quickly as technology changes. This is also true with toys in that the fad changes. Amazon has had difficulty getting some of the better brand name electronics manufacturers to sell to them and that also goes for toys.

Losses will continue to accelerate. The distribution centers are mostly leased and they are long term leases. Fulfillment is labor intensive and is a variable cost. Amazon has real problems.



To: Victor Lazlo who wrote (89043)12/29/1999 11:39:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
One more comment on Amazon which I know is off topic here<G> Initially Amazon was known as a book seller and the largest market for books is in Europe. There was not enough market in the US for Amazon to turn a profit with the slim margins and the price war going on with BKS which online is now BNBN. Bertelmans is the giant of all meda companys and they of course own a good share of BNBN. Now Amazon was going to expand big time in Europe and two years ago they opened their United Kingdom Store and their German Store. We here a lot about Amazon entering otehr businesse now but not too much about the book business. Note they stoped in Europe after Germany.

This is why:

bol.com

Remember they are a problem for Amazon in the US too through BNBN.