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

To: Rob S. who wrote (11432)	7/23/1998 12:27:00 AM
From: llamaphlegm	Respond to of 164684

Rob S. If Amazon.com tries to sell software, they will also become a competitor of some of the very same companies that they are trying to establish niche market advantages with for book sales. Many of these companies are already Amazon.com associates to whom Amazon pays roughly 10% commissions. So now Amazon will turn them from freindlies into competitors? Does that make sense? Bezo says he doesn't think so and I heard no analyst oppose that view.>>> THAT is a fricking brilliant point. It's one of those that you can't believe you didn't think of because after the fact it seems self-evident (comes from deadened brain cells due to the ringing in ears of bullish silliness repeated ad infinitum. LP

To: Rob S. who wrote (11432)	7/23/1998 12:55:00 AM
From: Andeveron	Read Replies (1) \| Respond to of 164684

>> Again, pure speculation not backed by any company statement or business plan. << And, as usual, it is clearly stated as pure speculation that does not require your reiteration. >> What about software? How many people buy software, try it out, find it doesn't work to their satisfaction and then return it? << This is a non-issue that also affects traditional software retailers such as CompUSA and Software Etc. Do you actually think those minimum wage clerks know about potential software conflicts and features on the programs that are shelved along those crisp aisles? The sale of software as I have mentioned in my post is supported after the sale by the publisher. Please read my posts if you wish to receive a cogent response without me repeating all of my points over again. >> Then there is the issue of margins. Margins on popular software is even less than margins on books. << Do you speak from fact or are you speculating? Let's see. I have the latest resale price list from Mecca Electronics based in New York. Mecca distributes computer and video game software. Video games are "popular software" and the top names sell hundreds of thousands of copies. I'll just take one example from the entertainment section. Quake 2 list is at $33.50. Egghead sells it for $47.83. That's a mark-up of 42.7% I assume that Amazon can make a good margin from software based on these numbers. >> Specialized software tends to take more specialist knowledge to sell and handle complaints and returns issues. << When does anyone go to the retailer when they need help on software? Why do you think Microsoft, the world's biggest software peddler, has a huge customer support staff? I can assure you that no mass retailer of Adobe Photoshop v5.0 knows how to record a simple action and then loop it to create a beveled edge on a group of portraits. They don't need to. Adobe does. Retailers are simply intermediaries that provide a convenient place to shop and this should be basic knowledge. >> And there are many experienced and highly focused marketers of software already plying the internet waters. << Name them. EGGS? >> If Amazon.com tries to sell software, they will also become a competitor of some of the very same companies that they are trying to establish niche market advantages with for book sales. Many of these companies are already Amazon.com associates to whom Amazon pays roughly 10% commissions. << Another non-issue. You focus on software sales, my speculation is that AMZN has a lot of opportunities that are not necessarily limited to competing with the likes of Software Etc and Electronics Boutique or associates. Amazon could very well spin off satellite companies that specialize in particular areas that use the Amazon business model. If your mind cannot accept the Amazon site as a multi-product shopping area then how about individual locations that are dedicated to different product areas. They could also partner up with traditional software retailers as well and co-brand. I look years ahead with interesting business models and the areas they may head off into. Nothing is static and everything is subject to change. You seem to only look at the next couple of months. Of course, Bezos and company could flop and file for chapter 11 next month and they would have had their fifteen minutes. Usual opinion disclaimers apply since it appears they need to be repeated continually.