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


To: Wayners who wrote (54242)4/30/1999 10:31:00 AM
From: Sarmad Y. Hermiz  Respond to of 164684
 
>> Lets end this now.

It is ended. By the way, according to last year's 10-K for Amazon, Pro-forma loss was 61M and advertising expense was 60M. So there would have been loss from oper even with ZERO advertising expense.



To: Wayners who wrote (54242)4/30/1999 12:00:00 PM
From: Glenn D. Rudolph  Read Replies (2) | Respond to of 164684
 
Yea, I'm sorry I've got you mixed up with somebody else. Lets end this now.

Wayne,

I do not jave you mixed up with anyone. I know you are the poster that stated Amazon would be profitable now if it were not for marketing. We really need this clarified.

Glenn



To: Wayners who wrote (54242)5/2/1999 1:22:00 PM
From: Glenn D. Rudolph  Read Replies (3) | Respond to of 164684
 
Wayne,

This is from the most recent 10K. I bolded the part that matters in the event you have difficult understanding:-)))

"Marketing and Sales

1998 % CHANGE 1997 % CHANGE 1996
-------- -------- ------- -------- ------
(IN THOUSANDS)
Marketing and sales............. $133,023 229% $40,486 565% $6,090
Percentage of net sales......... 21.8% 27.4% 38.7%

Marketing and sales expenses consist primarily of advertising, promotional and public relations expenditures, as well as payroll and related expenses for personnel engaged in marketing, selling and fulfillment activities. All fulfillment costs not included in cost of sales, including the cost of operating and staffing distribution centers and customer service, are included in marketing and sales. The Company expects its costs of fulfillment to increase based primarily on anticipated sales growth and its planned distribution network expansion. Marketing and sales expenses increased in 1998 and 1997 primarily due to increases in the Company's advertising and promotional expenditures, increased payroll and related costs associated with fulfilling customer demand and increased credit card fees resulting from higher sales. The increase in 1998 was also attributable to the entry into music and video sales and the launch of new stores in Germany and the United Kingdom. Marketing and sales expenses decreased as a percentage of net sales due to the significant increase in net sales. The Company intends to continue to pursue its aggressive branding and marketing campaign, which includes radio, television and print advertising and significant expenditures for online promotion and advertising relationships. In addition, the Company intends to increase investments in marketing, promotion and fulfillment activities related to its product, service and international expansion. As a result of the foregoing, the Company expects marketing and sales expenses to increase significantly in absolute dollars. "