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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?


To: chaz who wrote (2510)3/27/1999 4:35:00 PM
From: Lizzie Tudor  Read Replies (3) | Respond to of 28311
 
What's efficiently distributed on-line is information....not tractors, books, clothes, hard goods, etc.

Only if a retailer doesn't implement the distribution automation that is synonymous with online retailing... Dell was the first to really do this efficiently. I agree just sticking a website on an old logistics model will not make money, but the logistics infrastructure in the traditional retail models is so expensive (30%+ cost of goods) that automation changes the picture pretty dramatically. On the Amazon thread someone suggested I look at this website e-Mattress.com - He was joking I think, but actually my guess is an online mattress retailer probably saves 45% on cost of goods/sales right off the bat based on the logistics costs of moving those mattresses around the country... the problem with Amzn is that books are cheap to make and move, but if they started applying their infrastructure to heavy durables, it would be a different story... I think the street is counting on that which is why amzn trades where it does. JMO
Michelle