SI
SI
discoversearch

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: bambs who wrote (111782)11/11/2000 12:45:17 AM
From: Glenn D. Rudolph  Respond to of 164684
 
3. Inexpensive marketing. Ground shipping per $100 order probably averages about $10-$15. This is less than Amazon’s average customer-acquisition-cost.

There is no real correlation between Amazon deciding ro provide free shipping for items over $100 and customer acquition costs.

No real company would off free shipping on items over $100 unless they were not selling. I believe that is the truth of the matter and should be taken as is.

I am not sure why Blodget feels a need to defentd Amazon using so many speculative reasons for Amazon offering free shipping. Granted Blodget did likely receive his excellent paying job due to his $400 price target on Amzon call that caused a short squeeze. However, Merril has done no underwriting for Amazon and it is very likely Amazon will go back to Morgan Stanley for their cash need this spring.. Maybe Blodget feels a sense of obligation for landing such a fine job. Just a guess of course.

Glenn