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

To: Glenn D. Rudolph who wrote (120154)	3/11/2001 5:52:47 PM
From: Skeeter Bug	Respond to of 164684

very. misallocation of capital is a primary why bubbles screw the economy so badly. calling amzn a "misallocation" is extremely nice, imho ;-)

To: Glenn D. Rudolph who wrote (120154)	3/11/2001 6:28:43 PM
From: Alomex	Read Replies (2) \| Respond to of 164684

In time, and I do not believe a lot more time, the B2C e-commerce will have to raise margins some to remain in existance. They all have to do that so when the pricing structure goes up, it is not price fixing. It is simply survival. The we will be down to 1 to 2% margin variation between e-commerce retailers. At that point in time, B2C e-commerce will be profitable but not not anywhere near the hype that we have heard about. The consumer will be doing better since they will be able to buy products with less margin going to the retailer. The retailer will be giving less margin to the manufacturer, etc. Then we will have successful firms and on ongoing healthy competitive environment. Right on the money. B2C will survive in niches with small discounts. Profitability will be quite mediocre. As a discount player Amazon should have focused on keeping costs small. Instead the got the plushest offices and overpaid book packers. Amazon saves money in not having to pay for prime retail locations as compared to a brick-and-mortar B&N, but it loses to some of that advantage from the cost of shipping.