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

To: Joe E. who wrote (1482)	2/8/1998 10:49:00 PM
From: Andrew Shih	Read Replies (1) \| Respond to of 164684

Seems to me that adding a CD to a book package will cause a negligible increase in the cost to ship that package. To generalize, the more stuff in the package the lower the per item cost to ship. Seems to me that CD buyers might on average be a little more in a hurry to ge their package than book buyers and thus more likely to pop for the premium delivery services. I expect the premium delivery service would generate profits for Amazon. >> The problem that I see with online sales is the cost of shipping. When buying a book, the shipping cost is offset by the lower cost of the books and the convenience provided. When buying CD's however, the approximately $5 S&H for UPS would cause me to think twice. The problem is that places like Best Buy will sell the current hits, at $11.99 to $13.99, leaving Amazon to either severely undercut them or to offer some kind of other deal in order to compete. -Andrew