SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: KeepItSimple who wrote (38473)2/6/1999 7:36:00 PM
From: Lizzie Tudor  Read Replies (2) | Respond to of 164684
 
There are lots of goods where logistics is 30% and more of the price of the item to the consumer. There are shipping costs to the distributor, then the regional wh, then the retailer and finally the individual in some cases. Additionally, there is shortage every step of the way, and there is usually no cost effective way to move things back through the chain. These costs are completely removed when you start dealing in the direct model.

That's the first rule of shipping, in case you hadn't noticed.

I think you'd better read up on logistics.



To: KeepItSimple who wrote (38473)2/6/1999 11:45:00 PM
From: jach  Read Replies (2) | Respond to of 164684
 
In a few years from now books will be downloaded to electronic book readers and AMZN will be history. imo



To: KeepItSimple who wrote (38473)2/7/1999 9:45:00 AM
From: Glenn D. Rudolph  Respond to of 164684
 

The problem with shipping for E-tailers is that it will ALWAYS cost more to ship 1000
items to different customers than it will to ship 1000 items to 1 customer. That's the first
rule of shipping, in case you hadn't noticed.

If this is not clear to you guys yet- it will always cost more for amazon to ship 1000
books all over the country individually, than it will for barnes and noble to ship a
truckload of 1000 books to 1 location. It's basic physics. Economic slight of hand doesnt
even enter into the equation! (sorry covey)


KIS,

You clearly and very concisely made the argument I have been making for a year. Thank you.

Glenn