To: Wayners who wrote (54230 ) 4/30/1999 11:51:00 AM From: Glenn D. Rudolph Respond to of 164684
Do you understand the difference between a company that CAN make a profit anytime it wants to and one that no matter what they do CANNOT turn a profit. AMZN can be profitable right now by cutting marketing and advertising expenses to ZERO. Wayne, First off, your post was in bad taste. It looked like yelling and it was worded as though you know the facts. Let me clear something up for you. Amazon places all labor and materials expenses in their marketing line. This is part of fulfillment. Could you please tell me how Amazon would ship any products without boxes, people to fill and seal those boxes, electricity, etc.? You see Amazon does not spend much money on advertising and if we had Amazon not advertise at all in any form, they would still lose money and that is assuming the revenue remain the same. I recommend you read their last 10K which explains in a paragraph for each line item what is included. I posted the pertinent information here when the 10K was released. If you search around that date, you will locate it. The 10Q for the most recent quarter has not been released but expenses increased further, so I doubt removal of all advertising would cause the bottom line to be a profit. When that report is filed, I will happily explain it to you. Please tell me now you took the time to read the filings and to do your own calculations to determine how much was actually spent in "real marketing" compared to fulfillment. I am also curious as to where and how you obtained the information to make this incorrect statement. You saw it posted, read it in an anaysts report, etc.? Maybe you did the numbers yourself but made an error. Please tell me. Thank you. Glenn