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

To: Randy Ellingson who wrote (112623)	12/11/2000 10:17:34 PM
From: Glenn D. Rudolph	Respond to of 164684

Big difference in their resulting gross margins as well. If you're correct that they will count only their commissions as revenue from ToysRUs sales, their gross margins may look surprisingly good each holiday Q. What do you think -- do toy sales have a large gm (and net margin?) for Amazon, and will it boost their gm and earnings/losses for this Q? I ask because the rumor has been that a large portion of their items sold have been through Toy R Us. Randy, I do not know what is typical for gross margins in selling toys. Regardless, you brought up a good point. Since Amazon does not own the merchandise of Toys R Us, all the revenue will come in with no Cost of Goods sold. Granted there will be added fulfillment expenses but that will fall into the other fulfillment costs. The same goes for marketing and administration. The bottom line will not improve but the metrics will look a great deal better except for gross revenue.