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


To: Alomex who wrote (43913)3/4/1999 5:15:00 PM
From: Sarmad Y. Hermiz  Read Replies (2) | Respond to of 164684
 
>> Can you give a reason why e-commerce will be one of those exceptional sectors where everybody looses money?

They depend on intensive labor for distribution. Each package requires more fuel to deliver to a home than to a supermarket. This method is not efficient.

If amzn loses money on $.25 B sales, then loses more money on $.5 B, then more on $1 B, then more on $2 B. Please do tell at what level of sales will there be profits?



To: Alomex who wrote (43913)3/4/1999 8:30:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
There are very few sectors in the economy that are chronic money loosers. Hard drive
manufacturers seem to be one. So to the bears out there, can you think of another one?
Can you give a reason why e-commerce will be one of those exceptional sectors where
everybody looses money?


Alomex,

Retail e-commerce is another sector in which everyone looses money. The consumer is not willing to pay the extra for fulfillment and unless there are enough willing to pay more, retail e-commerce will always operate at a loss. Commercial e-commerce is different. It is not just a few items at a time.

Glenn