SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: 16yearcycle who wrote (50165)4/14/1999 1:01:00 AM
From: Sarmad Y. Hermiz  Respond to of 164684
 
Eugene,

>> Amazon.com to open huge Kansas distribution center

Well, either amzn management have gone mad, or they will take over the world. This is really, really far from their original business plan.

Do you notice the timing is precisely reminicient of Q4 when they announced the Reno facility two weeks prior to earnings.

Also, don't mean to be a stick in the mud, but does this mean amzn will lose even more money than expected this year ?

With Reno, this adds 1.1 million sq ft. They will have approx 5 times current capacity. So they had a run rate of $.25 B in Q4. This will give them $5 B / year capacity. I wonder if now they will be able to report losses that will dwarf auto company losses. But are sales running at this rate now ? That is impossible, since their current space only allows for $1 B/year.



To: 16yearcycle who wrote (50165)4/14/1999 5:26:00 AM
From: james medina  Read Replies (1) | Respond to of 164684
 
how many distribution centers does amzn have?



To: 16yearcycle who wrote (50165)4/14/1999 12:19:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
Tuesday April 13, 7:26 pm Eastern Time
Amazon.com to open huge Kansas distribution center
SEATTLE, April 13 (Reuters) - Internet book and music retailer Amazon.com
(Nasdaq:AMZN - news) said on Tuesday it would open its largest distribution center so
far, in Coffeyville, Kan., to reduce shipping times to cities such as Chicago, St. Louis,
Dallas and Minneapolis.

The existing 460,000-square-foot facility will be expanded to more than 750,000 square
feet -- more than 17 acres -- this year, the Seattle-based company said. The center is
expected to begin operations during the second half of this
year.''This facility is so large that we can stock an incredible number of titles ready to ship
right away,'' said Jimmy Wright, Amazon.com's chief logistics officer.




I am very confused. The concept was AMZN was to sell the book and be paid for it immediatly. The carrying of inventory was a rope around the brick and mortar firms.

I may post some reports from a year ago from Mary Meeker and Keith Benjamine about how this model was to work.

Glenn