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

To: DancesWithFedCalls who wrote (9908)	7/10/1998 12:05:00 PM
From: llamaphlegm	Read Replies (1) \| Respond to of 164684

Dances: Understood. This post from TMF. Assuming that this guy is not a crank (and he sounds pretty reasonable), it raises, yet again, some operational concerns for amzn's ongoing execution (and this is just the logistics within the world of books, can't wait to see how cd's complicates things. Llama PS Dances, if you want the attempted summary/organizational piece, give me an email to send it to. Subject: Re: I just don't get it.. Number: of 4066 Author: forestfan read profile \| no interview Date: 7/10/98 11:50 AM (ET) As I have said before.. AMZN uses Ingram/B&T to fulfil its orders..which is fine when you do $400M . BGP and BKS do $2.5 B each. Ingram is a midleman..AMZN pays more for its books than BGP or BKS because they buy from a middleman. One or two percent. Doesn't sound like much but when you discount too, it is significant. Now, suppose AMZN gets to $2.5 B - does Ingram buildg more warehouse space for one customer..? Or does AMZN get a bigger warehouse and has publishers ship directly. ( I guess the second). remember BGP and BKS already have such warehouses and will fill internet orders from them - so AMZN's inventory advantage diminishes ... to get better margins. Final point: Publishers first printings are based mostly on firm orders taken. (My wife writes as EMILY BRIGHTWELL/ LISTED AT AMZN/BGP/BKS SITES..The only way AMZN can fill an order in 2 - 3 days is if it is in the distribution pipeline I.E. iNGRAM /B&T ETC. Right now, AMZN is transfering the buying risk to Ingram - you store it, we'll sell it. As AMZN gets bigger, it has to adapt..books take up space in the real world - real miles and miles of shelving. I am not running down AMZN - they sell my wife's books - but forget the financials and consider the physical world too!

To: DancesWithFedCalls who wrote (9908)	7/10/1998 12:17:00 PM
From: Jesse	Read Replies (1) \| Respond to of 164684

My first comments on AMZN are more of a of a reflection ... I went on the net 02/97 and have been on almost every day since ... I love to read and go to book stores so i went to AMZN page right away and tried to buy a book to see how it worked. I could not get the book i wanted so i went to Barnes & Noble site .. found book and got it two days later. Since then i have bought maybe 50-60 books.... all at the book store. I like knowing i can get it online but i always seem to end up walking the store looking. Am i the everyman? If so AMZN is over done. If i am the exception then it may still have a way to go....... any thoughts. Jesse