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

To: Randy Ellingson who wrote (111894)	11/17/2000 1:30:22 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Or will their sales volume net them good access to what inventory there is available from the vendors and the vendors' distributors (does Amazon buy from distributors, in general, or always)? My guess only is that Amazon is a decent size player int he electronics field. I suspect they can buy directly from the factory and skip "vendors" presently. This is a product category I love to buy but likely have no more knowledge of how the channel works than anyone else. Here is strictly a guess. The factory will satisfy Wal-mart first. I do believe Wal-Mart buys sufficient quantity in advance so that an immediate need does not occurr. Also, to Wal-mart's advantage is I suspect they were able to negotiate either a return of some unsold product or a partial credit back on unsold merchandise so they can sell it after the holidays without taking much of an inventory markdown. This is the advantage of being huge as a buyer and one of the reasons Wal-Mart can almost dictate terms to manufacturers. Amazon does not have that clout. The other side of the coing at least for this quarter, is I believe a factory can safely assume they will get paid by Amazon. Amazon has plenty of cash for this quarter no matter what happens. am not so sure that is the case with other electronic retailers so the factory might be inclined to give Amazon preference for this year over others as long as they do not find out. I also suspect Amazon is not viewed by the factories as a huge long term player so Amazon will not have the benefit of stock exchange after the season. Don't you think that if a certain electronic item is sold out such as a DVD player, the consumer would choose another similar one regardless?