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

To: Sarmad Y. Hermiz who wrote (38986)	2/9/1999 12:22:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164687

Regarding AMZN costs, efficiency, etc.... How much further discounts can you get after $1 B annual sales ? I don't think there are are many discounts after you buy in lots of a thousand. Regarding warehousing and distribution, if they had unused capacity in their warehouse they would not need to increase warehouse space to keep up with sales. Also they added 400 people in 4th Q of 98. So their labor was not underutilized, either. Same for inventory. They added $29 Mil inventory in Q4 that was not there prev. Sarmad, This is the point exactly. Fulfillment costs are not fixed. They are variable. There are no more volume discounts to be had. The game is over as the present model stands. The "brand name" better be able to command a premium price and you showed it did not<G> Good luck on your short. My timing was terrible. Glenn