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

To: igor who wrote (1462)	2/5/1998 8:49:00 PM
From: Bill Holton	Respond to of 164684

I keep hearing people talking about AMZN getting into music. I've been buying CDs from them for several months.

To: igor who wrote (1462)	2/6/1998 2:36:00 PM
From: Robert Graham	Read Replies (3) \| Respond to of 164684

This depends on their relationship with the distributor. A bookstore like Amazon that deals in volume and good turnaround will be able to procure bigger discounts and credit arrangements. Also, many of the titles can be drop shipped directly to the customer from the book distributor on titles that are not worth maintaining an inventory in. So there are always options that can be utilized to cut costs and increase turnaround time on items not kept in inventory. I hope you do not think that Amazon keeps anywhere close to a major part of their bookselling list in inventory. This would be unrealistic. However, with that said, I do agree that Amazon will probably run into additional costs and lower margins with selling CDs. How much depends on what arrangements they can make with the CD distributor. They also can play the game that B. Dalton does with its suppliers. Wait until a few million in debt is owed on their account, and then negotiate a percentage on the dollar in repayment terms. All of their supplier are willing to be negotiated down like this because of the anticipated future business that a very large bookseller like B. Dalton can give them. This approach saves B. Dalton additional costs. Bob Graham