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

To: Glenn D. Rudolph who wrote (48012)	3/29/1999 8:45:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 164684

The auction business, as it grows, could improve Amazon's profitability margins considerably. eBay had $47 million in 1998 revenue (which, you should know, means that hundreds of millions of dollars worth of transactions took place on its site, because eBay only collects about 1% to 2% of each sales amount in fees), and on that $47 million in revenue, eBay had $40 million in gross profit. That 80% gross profit is phenomenal. It's because eBay isn't selling its own inventory -- it isn't selling anything. It merely offers an area for others to transact, an area that can expand and scale effortlessly.