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

To: Randy Ellingson who wrote (111813)	11/13/2000 12:57:21 AM
From: Glenn D. Rudolph	Respond to of 164684

But unless you plan to address a national and/or global market, your opportunity for 50% revenue growth wanes before that of Amazon's (maybe I'm wrong about this too -- tell me if you think so). There is only a certain size pie in my market area. There is a lot I do not have in the Erie market so I believe 50% growth is possible. I doubt it is likely. I also doubt Amazon will have anything near that either. That is comparing fiscal 2002 to 2001. Well I'm not sure how you'd define "necessary", but retailers do this sort of thing all the time from my observations You are correct. Retailers do this all the time. They do it due to the competitive nature of the industry. It is done when business is soft typically. A good retailer never gives away margins that are not necessary. It is necessary at times. More revenue with lower margins often better than less revenue. Lots of factors are considered. Inventory level. Debt. Competitive environment. Gain market share, etc. The reason I believe revenue for Amaozn is weak is management made the statement at during the conference call for Q2 2000 that they had enough customers and would focus on monetizing those customers heading towards profitability. The free shipping and management's comments are mutually exclusive in my opinion. Shipping strategy, but in may be part of the reason they forecast lower margins (or is there another much more major reason margins would be down naturally for their current Q?). Mangement's guidance was for lower margins due to the need to ship more partial shipments during the busy season from various distribution centers. That is not the same as provided free shipping for $100 or greater dollar size orders. 800.com and many other on-line firms have been offering free shipping on electronics in particular for part of November so there is a competitive issue there in my opinion.