Author Topic: AMZN - Amazon.com Inc.  (Read 641388 times)

Grenville

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Re: AMZN - Amazon.com Inc.
« Reply #100 on: February 04, 2013, 10:47:51 PM »
http://www.cbsnews.com/video/watch/?id=50138922n

60 minutes piece on robots and job growth.  Shows Kiva Systems robots at work.  Kiva is owned by AMZN.

Thanks for posting. I finally got around to watching this today. Interesting to see how unemployment will be impacted by automation.


ItsAValueTrap

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Re: AMZN - Amazon.com Inc.
« Reply #101 on: February 05, 2013, 01:12:10 PM »
Quote
The fairy tale would then be ended and we should see that Bezos never created anything worthwhile, but just a brand name selling items below their true cost or one necessary to earn a reasonable return on capital.

I think you're crazy.  ;)

In general, I think that it's pretty obvious that online retailing will crush many parts of traditional retailing (though not all of it).  It's fundamentally more efficient.  Take Newegg for example... they are privately owned and have a cost advantage over bricks and mortar retailers.  They tried to go public so you can actually read their financials.
http://www.sec.gov/Archives/edgar/data/1341704/000119312509198581/ds1.htm
Online retailing in general is profitable, viable without living off of the stock market, and rapidly growing.

2- Amazon is special.  I presume that their scale gives them a margin advantage (e.g. reducing shipping costs by having warehouses and distribution centers everywhere).  If newegg were to start selling books and Amazon were to start selling computer parts... I would bet on Amazon winning that battle.  In categories where they overlap (e.g. dSLR cameras), I believe that Amazon is beating newegg on prices and # of reviews.

The ultimate winner in online retailing will likely be the company that is best at playing the economy of scale game... probably Amazon.  I don't want to short the #1 company in any field... even if the stock does goes down it's probably not worth it to short the company (may go up several times before going down, may take a very long time to collapse, may not collapse to 0, etc.).

Quote
Just ask an Apple employee today about stock compensation and how they feel about it.
They've seen their shares skyrocket in value over the past several years and are very happy that they have Apple shares?

I don't think it matters too much if you pay employees in cash or shares... one can be swapped for the other*.  If you pay employees in shares, you avoid costly underwriting fees, incentives are slightly better aligned, and many human beings hold their shares because people tend to stick to the default option (see Richard Thaler's book Nudge).
« Last Edit: February 05, 2013, 01:18:46 PM by ItsAValueTrap »
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. " -Buffett

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berkshiremystery

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Re: AMZN - Amazon.com Inc.
« Reply #102 on: February 06, 2013, 04:37:54 AM »
It's always good to have some free float on which you don't have to pay interest.

Amazon launches virtual currency
2013-02-06

Amazon, the world's largest online retailer, plans to introduce virtual currency that can be used for purchases on the Kindle Fire tablet to entice more developers to create programs for the device.

http://www.smh.com.au/digital-life/tablets/amazon-launches-virtual-currency-20130206-2dy4a.html

rkbabang

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Re: AMZN - Amazon.com Inc.
« Reply #103 on: February 06, 2013, 07:21:47 AM »
If newegg were to start selling books and Amazon were to start selling computer parts... I would bet on Amazon winning that battle.  In categories where they overlap (e.g. dSLR cameras), I believe that Amazon is beating newegg on prices and # of reviews.

Newegg might not sell books, but Amazon does sell computer parts and does beat Newegg on prices.  I like newegg and want them to succeed, because I like the management.  They actually fight patent trolls that most companies just roll over and pay.*

But whenever I shop around for computer parts I end up buying at Amazon.com because it is significantly cheaper.  I recently bought a new motherboard, processor, 16GB of RAM, a 1TB hard drive, a 120GB solid state drive, a DVD-writer, a copy of Windows8 Pro, and some other stuff as well.  And in every case I found it cheaper on Amazon.  I wouldn't want to be in any business that competes with them.


*How Newegg crushed the “shopping cart” patent and saved online retail

"Newegg's Chief Legal Officer Lee Cheng, it's a huge validation of the strategy the company decided to pursue back in 2007: not to settle with patent trolls. Ever.

"We basically took a look at this situation and said, 'This is bullshit,'" said Cheng in an interview with Ars. "We saw that if we paid off this patent holder, we'd have to pay off every patent holder this same amount. This is the first case we took all the way to trial. And now, nobody has to pay Soverain jack squat for these patents."

"It's actually surprising how quickly people forget what Lemelson did. [referring to Jerome Lemelson, an infamous patent troll who used so-called "submarine patents" to make billions in licensing fees.] This activity is very similar. Trolls right now "submarine" as well. They use timing, like he used timing. Then they pop up and say, "Hello, surprise! Give us your money or we will shut you down!" Screw them. Seriously, screw them. You can quote me on that."

hyten1

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Re: AMZN - Amazon.com Inc.
« Reply #104 on: February 06, 2013, 07:57:10 AM »
Just something i thought i share

i have been a long time amazon user (prime membership too)

however here are some interesting facts:

1. amazon prices changes all the time, its very annoying as a consumer, i know why they do it but its annoying to me, i always wonder whatever product i am looking at if the price  is good or now, there are service online that will track a products price change on amazon. the price change can be significant

2. overtime i have notice amazon doesn't always have the best price (for a long time i did). Now i always comparison shop between a few places and buy from whoever has the best overall price (price, shipping, service etc). I have notice recently walmart.com beat amazon in price on quite a few things, however i have only tried it on toys, household items, baby stuff recently so obviously can't say for every item.

but at the end of the day amazon doesn't always have the best price, surprising i have been shifting many  of my household item purchase recently to walmart.com

just some info

hy

DCG

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Re: AMZN - Amazon.com Inc.
« Reply #105 on: February 06, 2013, 08:00:08 AM »
We have a prime membership, so the 2-day shipping is a big reason why we shop there. Their shipping times often even exceed those expectations.

I live in Vermont (not exactly near a major airport or shipping hub). I ordered something on Amazon last week at around 8:00pm. The package was delivered around noon the next day. Not really sure how they pull stuff like this off, but they do.
« Last Edit: February 06, 2013, 08:19:52 AM by DCG »

racemize

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Re: AMZN - Amazon.com Inc.
« Reply #106 on: February 06, 2013, 08:02:48 AM »
They are shipping wizards.  I've done some patents for them that are amazing, and a friend of mine worked on their shipping algorithms for a few years.  They often know more about shipping centers than the carriers (e.g., they identify problems before UPS/Fed Ex does).

ItsAValueTrap

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Re: AMZN - Amazon.com Inc.
« Reply #107 on: February 06, 2013, 11:07:24 AM »
Quote
Newegg might not sell books, but Amazon does sell computer parts and does beat Newegg on prices.  I like newegg and want them to succeed, because I like the management.  They actually fight patent trolls that most companies just roll over and pay.*
Thanks for the comments!  I live in Canada, which is an online retailing backwater.  I can clearly see that some prices listed on amazon.ca are higher than amazon.com (e.g. Jlabs earbuds, which I bought recently).  In the US, online retailing is much more advanced (more selection, lower prices).

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I've done some patents for them that are amazing, and a friend of mine worked on their shipping algorithms for a few years.  They often know more about shipping centers than the carriers (e.g., they identify problems before UPS/Fed Ex does).
It seems like Amazon's business might be very difficult to duplicate?  It seems like there is a lot of expertise that goes into keeping margins down... getting free advertising from your website, doing IT cheaply, having the software to manage moving your products from warehouse to warehouse, etc. etc.  And of course significant capex in having multiple warehouses/distribution centers.

Quote
but at the end of the day amazon doesn't always have the best price, surprising i have been shifting many  of my household item purchase recently to walmart.com
What do you think walmart's chances are of becoming the dominant online retailer? 
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. " -Buffett

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hyten1

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Re: AMZN - Amazon.com Inc.
« Reply #108 on: February 06, 2013, 11:16:11 AM »
ItsValueTrap,

well it depends on how you defined "dominant online retailer", walmart.com is already up there, its #4 base on this website http://www.internetretailer.com/top500/list/

i mean amazon.com is obviously the leader, you also get the feeling its not just a brochure website (walmart.com has more of that feel) but for norm items, everyday items (low margin) i don't care, i want the best price (price + shipping)

all i can say is amazon.com doesn't always have the best value (price + shipping) the price difference can be substantial.

i don't know how its going to play out btw walmart and amazon.

EDIT: But shoppers beware, amazon prices change can be significant, for example a flat screen i bought about 6mo ago, i track it for about 3 month before the price change can get upwards of $400.

this is actually very annoying for example, i buy in bulk the vaires toliet paper, paper towels from amazon, the price constantly changes, many time you have to switch the product from one list to another. its pretty annoying. then again prob most retailer do this. i always have to end up calculating $ per sheet of toilet paper to compare etc.

hy
« Last Edit: February 06, 2013, 11:19:58 AM by hyten1 »

hyten1

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Re: AMZN - Amazon.com Inc.
« Reply #109 on: February 06, 2013, 11:22:42 AM »
here is an example, everyones favorite book

http://camelcamelcamel.com/Tap-Dancing-Work-Practically-Everything/product/1591845734

price changes 15.95 to 18.45 within span of 1 mo

this is what i mean by, i never know everytime i get on amazon if the price i am seeing is the best/good price, espeically for items i don't buy very often.

hy