Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Alomex who wrote (136113)	12/23/2001 7:25:52 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>If I were Yahoo or Ebay,<< If I were Yahoo or eBay I'd pass. If I was AOL, I might be interested in acquiring Amazon.com... Assuming the price and the terms were right.

To: Alomex who wrote (136113)	12/24/2001 3:01:40 PM
From: Glenn D. Rudolph	Respond to of 164684

Why not? If I were Yahoo or Ebay, I would consider very seriously giving AMZN $1 billion (part in cash, part in debt retirement) in exchange for a controlling share, provided the DCs were open to restructuring the contracts. I question the merits of Ebay wanting to get into the fulfillment of any product. My experience, I would almost call it vast after this season, is the fulfillent is the most difficult part of the operation. The difficulties are as follows: 1. Seasonal 2. Best to have some seasonal staff and they are more error prone 3. Having the correct and the correct amount of inventory on hand. One thing that may be said for a successful on-line business. It moves very quickly and one will sell a lot of product. The customers expect what they ordered to be there and very quickly. Very little room for error. 4. Packaging material, logistics for shipping lower costs and other associated issues make for a much more costly process than one would anticipate. A case in point is we calculated our cost of fulfillment was $6.78 per package on average. The is properly attributing capital expenditures and depreciation, leased area, payroll, materials and freight charges. First offering free shipping on orders over $100.00 have just given away 678 basis points in margin and that is if one item costs over $100.00 Yahoo is going through a transition and maybe tney plan to get into fulfillment but eBay has no need in my opinion.