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

To: Glenn D. Rudolph who wrote (29052)	12/6/1998 12:26:00 AM
From: blankmind	Read Replies (1) \| Respond to of 164684

does anyone ever challenge your intelligent and well stated posts? There are so many false claims about AMZN that the situation is ludicrous: 1. AMZN would be profitable without marketing expense. False; fulfillment costs exceeds gross margins. Marketing just makes the losses greater. 2. AMZN is losing money due to their development of their site and infrastructure for distribution. False; R&D costs are mimimal now on their P/L statement. The distribution centers are leased and the size of these centers need increased so these costs are increasing. 3. AMZN turns over inventory much faster than a "traditional" bookseller. False; AMZN is only turning over their best sellers because that is what they inventory. The other books are supplied at a premium from Baker & Tayler on Ingrahms. The cost again for these books is a premium because the abvove mentioned firms are inventorying them for AMZN. Compare the best sellers at BKS and AMZN and you will find the inventory turn rate on these specific books are about the same. 4. AMZN does not have to pay rent in a high rent district. True; however, every book shipped from AMZN either through Baker & Taylor or Ingrams or direct from the AMZN wharehouse is shipped in a heavy cardboard shipping box. How much more does that box cost compared to a shopping bag at a retailer store? Multiply this difference by millions of boxes in a year. 5. AMZN only has one store as stated in the article. False; AMZN has one location at which orders are taken. There are four locations from which the majority of books are shipped. 6. Having many retail outlets is expensive and BKS is sattle with this expense. False; each retail store has thousands of people go by it producing free advertising. Also, if there is a bad snow storm in the Northwest, a few BKS stores may do little or no business that day. However, AMZN's employees may not make it to work and AMZN will do no business. The entire company is closed. This is true for the Northeast due to a distribution center there too. - glenn