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

To: Bullitt who wrote (34004)	1/10/1999 11:23:00 AM
From: Glenn D. Rudolph	Respond to of 164684

1. The costs of holding inventory for amzn is substantially lower than the brick & mortar costs of operating a retail store. With automation, they can fill an order almost without human intervention. That gives them a tremendous cost advantage. There is not automation for this as of yet of which I am aware. The recent disclosure of high fulfillments costs prove that. 2. Since internet sales are tax free, the consumer pays about the same for a purchase at amzn as at a store and amzn should make substantially more on the transaction. By law, the consumer is required to pay sales tax and are suppose to report it to their respective states. We know no one does. The states will change this with a Use Tax to solve that problem. 3. As bandwith increases dramatically in the next three years, the richness of shopping on-line will grow allowing people to listen to CD's, etc. I think e-tailing will take over from catalogs and start to cut into in-person shopping sustantially for certain products. Agreed on certain products. Also, congratulations on your success. I am jealous I was on the wrong side. Glenn