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


To: llamaphlegm who wrote (33318)1/7/1999 11:53:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
inventory? what happened to the positive carry from collecting from customers up front
and not having to pay for books until shipped ... oh i'm so confused -- can someone say
the barnes -- ingramm purchase is already costing amazon money?


LP,

It is not just Ingrahms. It is the fact that inventory in stock is needed to properly fulfill orders. If orders are fulfilled one at a time as AMZN does through a wholesaler, the wholesaler has to charge a lot more for the item.

This is now becoming comical. The business model has failed entirely. The economy of scale argument has been proven to not work. The nat carrying inventory has proven to not work. From a profit point of view, fundamentals are falling fast but the market keeps bidding this pos up.

There are even The Motley Fools stating that lower gross margins are good and that is very good for AMZN.

Glenn