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


To: Platter who wrote (23861)10/30/1998 10:38:00 AM
From: getgo234  Read Replies (1) | Respond to of 164684
 
I called AMZN's information telephone number and asked if they were
planning on offering the same no shipping charge as Walmart currently
offers. The response was not to expect any promotions until after
the holidays. I noted that I would be purchasing my books thru Walmart online because of the savings. The only response was if you can buy it cheaper at Walmart go for it.



To: Platter who wrote (23861)10/30/1998 1:28:00 PM
From: Rob S.  Respond to of 164684
 
Another sign, even if e-commerce is still in it's infancy, that price competition will be an increasingly important factor. Stretch out the implications of ease of shopping and increased competition and even a normal idiot like myself can see that extreme pressure will be put on margins.

One other factor that probably will develop in commodity product e-commerce is the development of the point and click buying, "one-stop" shopping experience. Amazon and BarnesandNoble.com already offer "quick click" purchasing. Once you become a registered customer with your preferred delivery options, all you need to do to purchase something is browse for it and then click. Then you can move to another selection and click, it's done. No extensive check-out procedure - not wait. However, at Amazon.com you can buy books and music. Soon they will have video. Wallmart and other retailers with established inventory and delivery infrastructures and purchasing volumes, people may find it convenient to purchase a lot of items at one site. WallMart and many other companies have huge advantages in delivering cost effectively. They may also offer the ability for customers to purchase on-line and then run by the neighborhood store to pick up the stuff up already packaged and charged.

Price competition won't really become the big competitive thing for several months. But major studies and early experience (including Amazon's) already indicates that is will become an increasingly important factor. How much so? That hardly matters because as it is now, the expectation among most analysts is that Amazon can somehow aviod it almost completely. Is that a reasonable?