[thelist] Amazon.com okay?

the head lemur headlemur at clearskymail.com
Wed Jul 25 22:18:35 CDT 2001


Currently Amazon is healthy. The 100 mil. from AOL is for cross promotion.
This is an extension of a earlier deal they had.
http://dailynews.yahoo.com/h/is/20010725/bs/as_amazon_s_world_turns_1.html

There are a couple of questions though.
<snip>
"The filing contains a so-called standstill agreement -- standard language
aimed at making sure Amazon doesn't find itself the target of a hostile
takeover by its new stakeholder.

For instance, AOL must hold the shares for at least two years and is barred
from buying more than 5 percent of the Seattle-based company's stock without
its permission.

Within the two years, AOL cannot seek an ``extraordinary transaction,''
which Amazon.com said could mean ``a merger, reorganization,
recapitalization, tender or exchange offer or asset disposition.''
</snip>
http://dailynews.yahoo.com/h/nm/20010725/wr/tech_amazon_aol_dc_4.html


The good news is this gives Amazon a little breathing room.
The bad news is the price on the day the deal closes.
This will determine how much of Amazon AOL will own.


Amazon is alive and well precisely because of what it does. Selection,
Service and Shipping. Money for stuff in the easiest way possible. If it is
in stock, and you order it, it is at your house as fast as you are willing
to pay for it. It sells primarly books, music and videos. Everybody on the
web knows what these items are. The only criteria is beyond that is author,
artist or title.

<opinion>
Personally they should have stayed in these three markets. Their expansion
into electronics and  all the other crap is what will get them in trouble if
anything does.

Primarily because you want fondle the stuff before you buy.(okay maybe just
me)

Secondarily, storage handling and shipping.
In consumer goods, Wal-Mart is the reigning leader. They use technology to
have up to the minute inventory control and electronic ordering to
suppliers. They do not have warehouses of goods. It get's delivered to a
transfer point and moved from the producer to the delivery trucks, to the
store. It gets counted, transfered, displayed and sold faster than any other
retail operation on the planet.
This reduces theft, shrinkage, and spoilage, all which contribute to
overhead losses that must be added to price over cost to produce a profit.
</opinion>

All the sniveling and whining is being done by reporters looking for
headlines, analysts reporting on businesses they have never worked in, and
investors looking for FAST Profits. None of these people ever having worked
in a business actually producing products and dealing with all of the
headaches that go with running a business.

The hype surrounding internet companies, this spring's crash and burn,
coupled with the internets ability to let almost anyone play in the market,
analysts wild predictions, ( a search on Henry Blogett can be illuminating)
and the promises made and broken by companies has created a public
perception of the inability of companies to make money on the web.

Your becoming an affiliate just points out that you can make money on the
web.


Ya gotta sell a bunch of stuff though, they don't send you a check till ya
got a hundred bucks coming though.

I Know I owe....

<tip type=selling websites>
when talking to a client about cost, have them contact their accountant,
they may be able to write your services off as advertising making it 100%
deductible.
(may not be applicable in all juristictions)
</tip>

<tip type=cross promotion>
When doing websites, mockup printable brochure pages. This can help a client
to build traffic through sending customers a brochure directing them to your
clients websites that have immediate brand recognition through commonality
of visual presentation.
</tip>

<tip type=graphics>
you built that glorious 3 MB image which you reduced to 10K for the web.
While you are in your graphics create different sizes and types for client
to use for cards, letterhead, etc.
Providing these will save your client many dollars in setup charges from
printers, sign makers, t-shirt guys and every other place your client may
want to put their logo, and will free up more money for you.
</tip>

the head lemur
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