Some of the people I sent Amazon gifts to are going to send me things back by post. I wonder if they will be using Amazon?
Unlike last year Amazon have started to sell higher margin goods and we know they have sold non-trivial numbers of these e.g. 20, 000 DVD players. Given both the increase in orders (currently almost 30 million for 4th Q) and the higher margin goods, I think this quarter will be good for Amazon.
All Amazon have to do is sell more items so as to cover their fixed costs e.g. one-off warehouse set-up, advertising...