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

To: Randy Ellingson who wrote (105243)	6/23/2000 8:53:00 AM
From: Glenn D. Rudolph	Respond to of 164684

I understand your points. I disagree that fulfillment is free in offline stores. But I also know that you have direct experience on this point. Randy, You are giving me credit for experience I really do not have but thank you;-) If I placed my goods on a shelf for the customer to pick up and bring to the register, shrinkage would wipe me out in no time. I was making reference to mass merchandisers and department stores where items are brought to the cashier to be paid for by the customer. Book superstores fit that too. Since it was going to be a gift, I felt I had to correct the merchant's "error" (the book was apparently packaged in damaged form). Of course the return involved time, and also involved some mis-information and uncertainty. Bad luck, but almost certainly more likely from the low-cost vendor than from a demonstrated customer service leader. All obvious, but I ended up buying the copy from Amazon. So, yes, I do see the possibility that customers are willing to pay slightly more at the "right" online store. Is it really necessary though, that the sale price be higher online than offline? Your experience and your reasoning is what makes the successful retailer successful. I agree with you regarding the majority of consumers. The retailer needs to be adding value in terms of service. Otherwise, who need them? Amazon has that and we both agree. My long term concern is the inablility to sell higher margin products without anyayw for the customer to see, touch and feel. Amazon is already charging more for most items compared to their competitors. Not a lot more but just a little which is worth it for the better service. I guess we agree. The missing issue is can this approach make decent bottom line profits in commodity products? Glenn