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

To: Glenn D. Rudolph who wrote (44302)	3/6/1999 7:28:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

Glenn, I did some searching in the Zacks database. I found some profitable mail-order retailers, and their distinguishing difference from Amazon is their very high gross margins. SkyMall has 46% and Global DirectMail has about 35%. That supports your assertion that to make a profit, Amazon must charge higher prices. Of course, on commodities, there are not many customers at higher prices.

To: Glenn D. Rudolph who wrote (44302)	3/7/1999 1:01:00 AM
From: Charlie J	Read Replies (1) \| Respond to of 164684

"fulfillment costs exceed gross margins" So how did mail-order resellers ever get profitable?

To: Glenn D. Rudolph who wrote (44302)	3/7/1999 12:09:00 PM
From: John Donahoe	Read Replies (2) \| Respond to of 164684

RE: I truly believe they have no intentions of becoming profitable and this is just a scheme to keep going while insiders sell stock shares for millions. Why do you find it necessary to detour into the fever swamp of conspiracy theories? RE: Not one of the bulls ever seem to understand my intitial premise and the continued fundamental truth that fulfillment costs exceed gross margins. As long as that remains the case, revenues can be in the trillions and there will be greater losses. First, we don't know this as fact. Second, if true, we don't know if this will remain so, and for how long. Third, conspiracys aside, it is my belief that Amzn's purchase of the Nevada site will help decrease fullfilment costs.