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

To: Mark Fowler who wrote (60889)	6/6/1999 2:55:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Glenn, Think of the problem this way. Jeff gets the idea that you can sell more merchandise by marking it down to move, thereby increasing customer satisfaction and absolute gross profits even with lower margins. With a much more productive overhead structure designed from the ground up, the company can take share as well as ending up as a more profitable, from the standpoint of return on capital, huge company. Mark, Look at it this way. If the cost of fulfillment exceeds gross margins, profits can never happen. It never matters how large gross revenue becomes since fuflillment expenses are variable. Revenues will go to infinity but fulfillment expenses will too. Then what?