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

To: tonyt who wrote (44472)	3/8/1999 8:30:00 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

Tony, >> Wasn't AMZN's claim to fame that they didn't need to inventory? Well, that was a long time ago. Of course, that model is so easy to imitate. There was an article about a home based business that does just that, and they need to sell only a hundred books a month to be nominally profitable.

To: tonyt who wrote (44472)	3/8/1999 8:51:00 AM
From: Glenn D. Rudolph	Respond to of 164684

>My opinion is they needed to carry more inventory and they needed wharehouse space Wasn't AMZN's claim to fame that they didn't need to inventory? (...oh yeah, and Bezo was gonna stay in his studio apartment until AMZN became profitable) tonyt, I have been "preaching" about how this business model has not worked for close to a year but the bulls still believe in it. It has become obvious that Amazon will have to carry inventory and pleanty of it. Clearly, some will turn faster than others. Therefore, there will be some inventory that is dead stock for awhile like any other retailer. The reason is the variety of items. Costs for leases of distribution centers (wharehouses) will increase, payroll will increase, cash tied up in inventory will increase and we will continue on with greater losses. The explanation will be the investment in the future of the company and that will be touted by the analysts and the company. Bezos still has a studio apartment. It is by the maid quarters of his $12 million house. It is for the gardner in the summer. Glenn