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

To: H James Morris who wrote (4164)	5/10/1998 5:58:00 PM
From: Robohogs	Read Replies (2) \| Respond to of 164687

But those costs of heating, etc. are still less per book sold than are the shipping costs associated with any of the web retailers. this is the forgotten point. As Amazon increases revenues, and hence books sold, the losses mount. This would seem to indicate that variable costs (shipping- since they upgrade everyone- plus cost per book plus handling plus order processing) exceed revenue per book. I know this isn't perfect analysis since Amazon is building its infrastructure with new systems and databases, etc., and that once these are built for mature sales levels, these costs will flatten (how many people do you need entering new books into the database - not many). I also realize that marketing costs are increasing and these are up to management's discretion. I would still think losses should be shrinking. I do feel sorry for the high yield buyers here.