Comments on: Amazon’s vision? What vision? http://venturebeat.com/2006/11/03/amazons-vision-what-vision/ News About Tech, Money and Innovation Mon, 23 Nov 2009 07:11:08 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: Venture Beat Contributors » Amazon.com and the Fabless Semiconductor Industry http://venturebeat.com/2006/11/03/amazons-vision-what-vision/comment-page-1/#comment-6603 Venture Beat Contributors » Amazon.com and the Fabless Semiconductor Industry Fri, 10 Nov 2006 05:44:34 +0000 http://venturebeat.com/2006/11/03/amazons-vision-what-vision/#comment-6603 [...] [VentureBeat criticized Amazon for lack of vision. Baris Karadogan, of ComVentures, begs to differ and commends the company.] [...] [...] [VentureBeat criticized Amazon for lack of vision. Baris Karadogan, of ComVentures, begs to differ and commends the company.] [...]

]]> By: Alex Le http://venturebeat.com/2006/11/03/amazons-vision-what-vision/comment-page-1/#comment-6459 Alex Le Mon, 06 Nov 2006 03:56:26 +0000 http://venturebeat.com/2006/11/03/amazons-vision-what-vision/#comment-6459 John McSpadden, I have to disagree with you when you say Amazon is just hype. I think Amazon will do just fine in the long run. It's true when you say that increasing transportation and labor costs will affect Amazon's bottom line, but I think it's Walmart that have to face that risk first. Do you also say that Walmart will be doomed in the long run too? I think both companies will do fine. If there is still a demand for online shopping, there is still Amazon and other online stores. Also, Amazon relies greatly on its technology to help run the company, especially with the invetory management. I am still amazed on how Amazon and Newegg do their shipping trick, and both are doing well on sales. I think you are suspecting the Amazon's Prime programm doesn't work. Lets say it's $80/ year, it costs Amazon roughly $5 to have an item shipped. That's 16 orders per year. That's one order per month for an avarage person and that's reasonable for Amazon to fulfil without affecting their profit too too much. They've been having the free shipping for orders over $25 for a long time, so Prime may just lower their profit margin a bit. In my opinion, Prime is like an insurance plan or an all-you-can-eat buffet place. Amazon is still making money of each and every order that goes through. John McSpadden,

I have to disagree with you when you say Amazon is just hype. I think Amazon will do just fine in the long run. It’s true when you say that increasing transportation and labor costs will affect Amazon’s bottom line, but I think it’s Walmart that have to face that risk first. Do you also say that Walmart will be doomed in the long run too? I think both companies will do fine. If there is still a demand for online shopping, there is still Amazon and other online stores.

Also, Amazon relies greatly on its technology to help run the company, especially with the invetory management. I am still amazed on how Amazon and Newegg do their shipping trick, and both are doing well on sales.

I think you are suspecting the Amazon’s Prime programm doesn’t work. Lets say it’s $80/ year, it costs Amazon roughly $5 to have an item shipped. That’s 16 orders per year. That’s one order per month for an avarage person and that’s reasonable for Amazon to fulfil without affecting their profit too too much. They’ve been having the free shipping for orders over $25 for a long time, so Prime may just lower their profit margin a bit. In my opinion, Prime is like an insurance plan or an all-you-can-eat buffet place. Amazon is still making money of each and every order that goes through.

]]> By: Smoke and Mirrors - Amazon « Technically Speaking http://venturebeat.com/2006/11/03/amazons-vision-what-vision/comment-page-1/#comment-6453 Smoke and Mirrors - Amazon « Technically Speaking Sun, 05 Nov 2006 14:47:16 +0000 http://venturebeat.com/2006/11/03/amazons-vision-what-vision/#comment-6453 [...] Here is a great article about Amazon. Technically Speaking, I think it’s time to wake up and smell the Coffee. That is Coffee with Rex Dixon. I’m glad I actually stepped outside for a second, because I could have really written a scathing rip about this. [...] [...] Here is a great article about Amazon. Technically Speaking, I think it’s time to wake up and smell the Coffee. That is Coffee with Rex Dixon. I’m glad I actually stepped outside for a second, because I could have really written a scathing rip about this. [...]

]]> By: Amazon’s New Direction at The Gong Show http://venturebeat.com/2006/11/03/amazons-vision-what-vision/comment-page-1/#comment-6445 Amazon’s New Direction at The Gong Show Sat, 04 Nov 2006 22:33:27 +0000 http://venturebeat.com/2006/11/03/amazons-vision-what-vision/#comment-6445 [...] There has been some recent press regarding Jeff Bezos’s latest directions. Some (relatively) positive posts, and some quite negative posts. [...] [...] There has been some recent press regarding Jeff Bezos’s latest directions. Some (relatively) positive posts, and some quite negative posts. [...]

]]> By: John McSpadden http://venturebeat.com/2006/11/03/amazons-vision-what-vision/comment-page-1/#comment-6444 John McSpadden Sat, 04 Nov 2006 22:26:33 +0000 http://venturebeat.com/2006/11/03/amazons-vision-what-vision/#comment-6444 Amazon is nothing but hype, smoke and mirrors. Its business model is doomed to fail in an era of increasing transportation and labor costs. Eventfully the accounting tricks will end and people will realize it is much more expensive in the aggregate to package and ship individual products to a consumer's door in one or two days than it is to have the consumer pick up multiple products at the store in a traditional shopping trip to the mall. Amazon is nothing but hype, smoke and mirrors. Its business model is doomed to fail in an era of increasing transportation and labor costs. Eventfully the accounting tricks will end and people will realize it is much more expensive in the aggregate to package and ship individual products to a consumer’s door in one or two days than it is to have the consumer pick up multiple products at the store in a traditional shopping trip to the mall.

]]>