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

To: Randy Ellingson who wrote (110959)	10/23/2000 10:40:24 AM
From: Eric Wells	Read Replies (1) \| Respond to of 164684

One of Amazon's newer business lines where I think we'll see meaningful revenue growth is electronics and software. Electronic items may have higher margins than books - but inventory costs for electronics are considerably higher - not only the costs of storing the items, but the losses that have to be accounted for unsold items (I don't believe Amazon will just be able to ship unsold items back to the manufacturers). As for software - it's my impression that margins tend to be high for software manufacturers. However, I don't believe that margins for software retailers are all that high - after all look at Egghead. Also consider that many of the big software manufacturers (Microsoft for example) will be more inclined to have customers download software directly from their own sites - they may link through Amazon, but I'm sure the cut that companies like Amazon will get will be small. -Eric