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

To: Craig Richards who wrote (29275)	12/8/1998 4:54:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 164684

>>I'm not sure what the prices have to do with Amazon's profits in this case. I doubt that LL Bean's web site prices will be any more than in their store or in their catalog. And if Amazon gets either a few cents per transaction, or else a percentage of the transaction amount, it will be high margin money for Amazon.<< shopping via the net will be more expensive than bricks and mortar due to excessive shipping costs. i thought the whole premise here was to save customers their dollars through efficiencies. guess that can't be done.

To: Craig Richards who wrote (29275)	12/8/1998 12:39:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I'm not sure what the prices have to do with Amazon's profits in this case. I doubt that LL Bean's web site prices will be any more than in their store or in their catalog. And if Amazon gets either a few cents per transaction, or else a percentage of the transaction amount, it will be high margin money for Amazon. Craig, You did comment on the fulfillment costs yesterday regarding this "new" model. I told I would write back when I could make time and gave it some thought. Candidly, I am no more or less sure of myself today. This plan does eliminate the fulfillment cost. That is not debateable.This also could be a decent margin business as is a portal if companys are willing to give a percentage. I am baffled to predict if companys will give a percentage. Net sales typically are low margin from the start. Most companys with decent credibility can promote their own sites. Further, shpping.yahoo.com, Excite, AOL service and AOL.com all have similar offerings. The question remains will companys be willing to pay Amazon to be on their site and more importantly, would they be willing to give a percentage. Both Yahoo and AOL get more traffic than Amazon. My answer is as clear as mud. I do not know if this will work. I do know it can work whereas, the prior model could not. My guess would be that most firms would chose one of the portals first. This is gut feeling not something of which I am certain. I am not not a hypster as some have accused. I tell it how I see it and AMZN could not make a profit in their prior business model. I am not willing to make that statement on this issue. I wish I could speak with some of the larger on-line retailers and see what their reaction to paying Amazon may be. I doubt they will tell me. Glenn