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Amazon.com Inc. Message Board

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  • dgindc dgindc Dec 3, 1997 3:11 PM Flag

    Valuation

    While Amazon is the most successful Internet retailer to date, its losses reveal the strength of the traditional brick and mortar franchise system. Under the franchise system, capital investment and risk are shared with franchisees. Under the sell from
    one web site plan, it's concentrated at one point. This means that the only way to cover overhead in this low margin environment is volume, lots and lots of volume. I don't know what AMZN's break-even sales point is but it would not surprise me if it is the multi-billions.

    The Motley Fool likes the stock for its reach which it uses to sell ad space. However, this company is in the book selling business. If they want an ad seller with reach they should invest in Yahoo! whose 90% gross margins are more appealing than Amazon's 20%.

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    • this is my first experience with message board...found the comments about amazon captivating. nothing to add at the moment. thanks to everyone for sharing.

    • Amazon 20% margins???? You're killing me.

    • "While Amazon is the most successful Internet retailer to date, its losses reveal the strength of the traditional brick and mortar franchise system. Under the franchise system, capital investment and risk are shared with franchisees. Under the sell from one web site plan, it's concentrated at one point. This means that the only way to cover overhead in this low margin environment is volume, lots and lots of volume. I don't know what AMZN's break-even sales point is but it would not surprise me if it is the multi-billions. The Motley Fool likes the stock for its reach which it uses to sell ad space. However, this company is in the book selling business. If they want an ad seller with reach they should invest in Yahoo! whose 90% gross margins are more appealing than Amazon's 20%. "

      good point on Yahoo.

      • 1 Reply to rosiescenario
      • ""While Amazon is the most successful Internet retailer to date, its losses reveal the strength of the traditional brick and mortar franchise system. Under the franchise system, capital investment and risk are shared with franchisees. Under the sell from one web site plan, it's concentrated at one point. This means that the only way to cover overhead in this low margin environment is volume, lots and lots of volume. I don't know what AMZN's break-even sales point is but it would not surprise me if it is the multi-billions. The Motley Fool likes the stock for its reach which it uses to sell ad space. However, this company is in the book selling business. If they want an ad seller with reach they should invest in Yahoo! whose 90% gross margins are more appealing than Amazon's 20%. "

        good point on Yahoo."

        ...though it is obvious eBay was the best bet.

    • "While Amazon is the most successful Internet retailer to date, its losses reveal the strength of the traditional brick and mortar franchise system. Under the franchise system, capital investment and risk are shared with franchisees. Under the sell from one web site plan, it's concentrated at one point. This means that the only way to cover overhead in this low margin environment is volume, lots and lots of volume. I don't know what AMZN's break-even sales point is but it would not surprise me if it is the multi-billions. The Motley Fool likes the stock for its reach which it uses to sell ad space. However, this company is in the book selling business. If they want an ad seller with reach they should invest in Yahoo! whose 90% gross margins are more appealing than Amazon's 20%."

      ...and here we are 6 years later.

      good analysis by one of our fallen former comrads.

    • .




      qqq

 
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