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

To: Alomex who wrote (120164)	3/11/2001 6:53:15 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

As a discount player Amazon should have focused on keeping costs small. Instead the got the plushest offices and overpaid book packers. I agree. Amazon would have succeeded if they focused on their original business plan of selling media material and inventorying very little. This was the advantage of the model. 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 There is a tradeoff there. Fulfillent is always going to be a cost needed to be addressed.

To: Alomex who wrote (120164)	3/11/2001 8:57:03 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 164684

>>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.<< shipping is cheap. the real cost is transparent information available to the customer and ease of substitution. margins on the net will be less than 1/2 the margins of b&ms if they are lucky and good. when you have a customer in your store, they are likely to pay more b/c of convenience and gen'l ignorance of competitor prices. not so on the web. a couple "clicks" and you have more information than you could ever want. not good for business. great for consumer. the internet will eventually be a niche marketplace where a fraction of folks shop for convenience and price. i believe that niche is smaller than the current subsidized (sell a buck for 90 cents) revenues we see today. profits will be made. they will be small and revenues will shrink. can't shake a $10 billion market cap at that ;-)