Amazon Tries Really Hard
- Thread starter George7941
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Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Originally Posted By: billt460
Originally Posted By: PimTac
Retail abandoned the consumer. They offer poor customer service and in reality they all stock the same stuff. It may have different labeling but it’s all from the same sources. Selections are limited. The only retailers that are successful are those filling a certain niche.
I agree completely. For years I heard how places like Wal-Mart and Target were killing the mom and pop local business. Now I'm hearing the same nonsense how Amazon is killing them. They have all become victims of their own creation. Business evolves on a never ending basis. I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing". As if pumping gas was rocket science.
Checkout girls in supermarkets cried and whined much the same when scanners were introduced into grocery stores. People resist chance. Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends. Direct, to your front door Internet marketing is fast, easy, convenient, and cheaper. Brick and mortar is slowly going the way of Blockbuster Video in many cases. It has simply outlived it's time. Much like the horse drawn wagon, selling ice door to door before electric refrigeration.
The old house I grew up in had the old ice box cabinet with a lead pan and a drain to the outside.
In some ways retail is coming full circle. As a kid we had milk, eggs, butter etc delivered to the back porch by the milkman. Supermarkets were just starting up. Neighborhoods had corner grocery stores. Cities had retail districts all over and thriving downtowns. Then the malls came and many downtowns died off as department stores moved to the malls.
So, retail have been changing all along. Amazon and the internet model are just the latest iteration.
Originally Posted By: PimTac
Retail abandoned the consumer. They offer poor customer service and in reality they all stock the same stuff. It may have different labeling but it’s all from the same sources. Selections are limited. The only retailers that are successful are those filling a certain niche.
I agree completely. For years I heard how places like Wal-Mart and Target were killing the mom and pop local business. Now I'm hearing the same nonsense how Amazon is killing them. They have all become victims of their own creation. Business evolves on a never ending basis. I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing". As if pumping gas was rocket science.
Checkout girls in supermarkets cried and whined much the same when scanners were introduced into grocery stores. People resist chance. Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends. Direct, to your front door Internet marketing is fast, easy, convenient, and cheaper. Brick and mortar is slowly going the way of Blockbuster Video in many cases. It has simply outlived it's time. Much like the horse drawn wagon, selling ice door to door before electric refrigeration.
The old house I grew up in had the old ice box cabinet with a lead pan and a drain to the outside.
In some ways retail is coming full circle. As a kid we had milk, eggs, butter etc delivered to the back porch by the milkman. Supermarkets were just starting up. Neighborhoods had corner grocery stores. Cities had retail districts all over and thriving downtowns. Then the malls came and many downtowns died off as department stores moved to the malls.
So, retail have been changing all along. Amazon and the internet model are just the latest iteration.
Originally Posted By: billt460
Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends.
While things get more complex, they also get more reliable and the knowledge on how to fix it is out there. All you had was a skimpy repair manual back in the 80's where the installation was the reversal of removal. With forums and repair manuals on line, it's simpler to fix than before if you feel like doing the research, especially on mass market cars, lots of videos on youtube on how to do basic repairs.
Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends.
While things get more complex, they also get more reliable and the knowledge on how to fix it is out there. All you had was a skimpy repair manual back in the 80's where the installation was the reversal of removal. With forums and repair manuals on line, it's simpler to fix than before if you feel like doing the research, especially on mass market cars, lots of videos on youtube on how to do basic repairs.
Originally Posted By: Wolf359
Originally Posted By: billt460
Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends.
While things get more complex, they also get more reliable and the knowledge on how to fix it is out there. All you had was a skimpy repair manual back in the 80's where the installation was the reversal of removal. With forums and repair manuals on line, it's simpler to fix than before if you feel like doing the research, especially on mass market cars, lots of videos on youtube on how to do basic repairs.
I totally agree here. You can find out how to repair pretty much anything on the net. No more buying expensive repair manuals that might help or might not help. Having to buy new versions every year or two to keep up to date etc.
Originally Posted By: billt460
Some change is worth resistance. But most isn't. I remember people saying new cars were "bad", because they were getting so complex, you couldn't work on them yourself. This kind of thing never ends.
While things get more complex, they also get more reliable and the knowledge on how to fix it is out there. All you had was a skimpy repair manual back in the 80's where the installation was the reversal of removal. With forums and repair manuals on line, it's simpler to fix than before if you feel like doing the research, especially on mass market cars, lots of videos on youtube on how to do basic repairs.
I totally agree here. You can find out how to repair pretty much anything on the net. No more buying expensive repair manuals that might help or might not help. Having to buy new versions every year or two to keep up to date etc.
For every winner there is a loser. This is progress; this is technology.
The only constant is change.
Embrace change; you have no choice.
At the turn of the nineteenth century, there were lotsa buggy makers, horse whips, etc.
Every product/service has a life span.
The only constant is change.
Embrace change; you have no choice.
At the turn of the nineteenth century, there were lotsa buggy makers, horse whips, etc.
Every product/service has a life span.
- Joined
- Nov 2, 2017
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- 312
Originally Posted By: George7941
I wish local businesses tried as hard at customer service as Amazon.
This is the crux.
I wish local businesses tried as hard at customer service as Amazon.
This is the crux.
Originally Posted By: Johnny2Bad
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Which brings us to the point I made previously - Amazon is willing to sacrifice profits and expend capital on honing their business model and expansion. They are taking the long term view. Too many companies are focused on profits and dividends.
The same thing has been said about domestic car manufacturers vs the Japanese car manufacturers. The Japanese ones take a longer term view.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Which brings us to the point I made previously - Amazon is willing to sacrifice profits and expend capital on honing their business model and expansion. They are taking the long term view. Too many companies are focused on profits and dividends.
The same thing has been said about domestic car manufacturers vs the Japanese car manufacturers. The Japanese ones take a longer term view.
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
I'm also no fan of Bezos and his plan to take over nearly every industry - that leads to less competition and often higher prices. It's starting to happen to Amazon - they are often not the lowest cost for many items.
I use Amazon as the retailer of last resort - I'll actively search for and pay more for stuff than use Amazon. Local is first and many times I get better service as well.
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
I'm also no fan of Bezos and his plan to take over nearly every industry - that leads to less competition and often higher prices. It's starting to happen to Amazon - they are often not the lowest cost for many items.
I use Amazon as the retailer of last resort - I'll actively search for and pay more for stuff than use Amazon. Local is first and many times I get better service as well.
Last edited:
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
Originally Posted By: billt460
I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing".
Shoot...............That was Oregon just a mere 6 months ago!!!!!!
I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing".
Shoot...............That was Oregon just a mere 6 months ago!!!!!!
I order from Amazon a lot and I don't remember something not showing up on it's scheduled date. I ordered a case for my keyfob on Friday, it showed up today. They even emailed me a picture of it sitting on the porch.
Originally Posted By: OilFilters
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Lots of stuff Amazon sells uses USPS. If not indirectly via SmartPost/Surepost or whatever it's called. And given the issues Amazon has had as of late I'd say they would be better served by leaving the deliveries to the professionals.
Quote:
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
It's more the lesser of 2 evils. WalMart at least employs my neighbors and lots of them to run the stores. Granted the jobs don't pay much but at least they are hiring people in the area. Compare that to Amazon who does not employ near as many and, from all accounts the conditions suck. And the Smug [censored] at the top (Bezos) is doing little about it.
Walmart is doing a lot right - don't order much from them that I can't pick up in the store but we've had good experiences with them. And their e-commerce was up this quarter. https://www.cnbc.com/2018/05/17/walmart-earnings-q1-2018.html
Walmart has the logistics down to a science (they were a pioneer in JIT for retail) and with a little bit of a push could put the screws to Amazon. Any of the big box retailers could if they would try.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Lots of stuff Amazon sells uses USPS. If not indirectly via SmartPost/Surepost or whatever it's called. And given the issues Amazon has had as of late I'd say they would be better served by leaving the deliveries to the professionals.
Quote:
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
It's more the lesser of 2 evils. WalMart at least employs my neighbors and lots of them to run the stores. Granted the jobs don't pay much but at least they are hiring people in the area. Compare that to Amazon who does not employ near as many and, from all accounts the conditions suck. And the Smug [censored] at the top (Bezos) is doing little about it.
Walmart is doing a lot right - don't order much from them that I can't pick up in the store but we've had good experiences with them. And their e-commerce was up this quarter. https://www.cnbc.com/2018/05/17/walmart-earnings-q1-2018.html
Walmart has the logistics down to a science (they were a pioneer in JIT for retail) and with a little bit of a push could put the screws to Amazon. Any of the big box retailers could if they would try.
I get a lot of stuff from amazon. It saves a lot of time but the selection is important. A strange example:
I have a very old cat with a lot of health problems. About 6 months ago she started eating her cat litter (probably trying to correct mineral imbalance causes by kidney problems). I needed non-clumping cat litter in case she eats it (clumping will clog her digestive system). None of my regular retailers (eg target) had any and I found only one semi-local pet store open late enough that had one type of non-clumping cat litter out of 20 types. I just get from amazon now: they have the wherehouse space to store less-popular items that cannot be substituted.
I have a very old cat with a lot of health problems. About 6 months ago she started eating her cat litter (probably trying to correct mineral imbalance causes by kidney problems). I needed non-clumping cat litter in case she eats it (clumping will clog her digestive system). None of my regular retailers (eg target) had any and I found only one semi-local pet store open late enough that had one type of non-clumping cat litter out of 20 types. I just get from amazon now: they have the wherehouse space to store less-popular items that cannot be substituted.
Originally Posted By: OilFilters
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
Originally Posted By: Linctex
Originally Posted By: billt460
I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing".
Shoot...............That was Oregon just a mere 6 months ago!!!!!!
I believe the new regulation in Oregon will allow self serve in the less populated counties of which there are a few. A better description would be a county that has more cattle than people. The rest will be full service as they are now. The new regulation is voluntary.
Originally Posted By: billt460
I remember when self service gas stations were starting to come on line in the early 70's. Full service stations warned of explosions and car fires because people, "had no idea what they were doing".
Shoot...............That was Oregon just a mere 6 months ago!!!!!!
I believe the new regulation in Oregon will allow self serve in the less populated counties of which there are a few. A better description would be a county that has more cattle than people. The rest will be full service as they are now. The new regulation is voluntary.
Originally Posted By: Reddy45
Originally Posted By: OilFilters
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
The city of Seattle just passed the Head Tax which taxes large businesses per employee.
Originally Posted By: OilFilters
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
Amazon is working on becoming their own shipper. They've already purchased a fleet of jumbo jets. USPS rate hikes have been a regular thing for decades, it's never really bothered them before. USPS is pathetic compared to the other guys and Amazon mostly doesn't use them...
Originally Posted By: itguy08
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
Why is one giant evil corporation better than the other? Walmart has been fiercely trying to outdo Amazon for a while now, and they are failing. I order online regularly from both - Walmart delivery service is a JOKE compared to Amazon. It's pretty sad considering they have more locations throughout the country, and decades more experience.
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
The city of Seattle just passed the Head Tax which taxes large businesses per employee.
Originally Posted By: Reddy45
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
Amazon pays corporate taxes as required just like any other company, and collects sales tax in states as required.
WM actually pays a fair share of taxes where applicable. Amazon seems to have a track record of NOT paying taxes.
Also, most walmarts are involved with local charities and causes because that WM building is a component of that community. Amazon cannot claim this.
Amazon pays corporate taxes as required just like any other company, and collects sales tax in states as required.
JHZR2
Staff member
It works, for some things.
I'm lucky that there's an amazon "storefront" at the University of Pennsylvania. So anything that needs to be returned I can walk there to return absolutely free.
If I didn't have that option, Id be having more issues.
Amazon is fast, but brick and mortar is instant. So to a great extent that will never go away.
And for some stuff, you just can't. I went to JC Penney to get some khaki pants. I tried on a few types to determine fit. No augmented reality laser scan will ever be 100% right to verify human emotion and the human eye. Some stuff, like clothes, you just need to shop.
And the obsolete shopping mall, when kept small and neat in a more rural area, is a breeze and a delight. The one by me is totally "upscale", the lots are doubly crowded due to most places offering valet parking (yuck), and it's too much of a chore. Give me a smaller 1980s mall that has been kept up. Not many left.
I'm lucky that there's an amazon "storefront" at the University of Pennsylvania. So anything that needs to be returned I can walk there to return absolutely free.
If I didn't have that option, Id be having more issues.
Amazon is fast, but brick and mortar is instant. So to a great extent that will never go away.
And for some stuff, you just can't. I went to JC Penney to get some khaki pants. I tried on a few types to determine fit. No augmented reality laser scan will ever be 100% right to verify human emotion and the human eye. Some stuff, like clothes, you just need to shop.
And the obsolete shopping mall, when kept small and neat in a more rural area, is a breeze and a delight. The one by me is totally "upscale", the lots are doubly crowded due to most places offering valet parking (yuck), and it's too much of a chore. Give me a smaller 1980s mall that has been kept up. Not many left.
JHZR2
Staff member
Originally Posted By: itguy08
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
I'm also no fan of Bezos and his plan to take over nearly every industry - that leads to less competition and often higher prices. It's starting to happen to Amazon - they are often not the lowest cost for many items.
I use Amazon as the retailer of last resort - I'll actively search for and pay more for stuff than use Amazon. Local is first and many times I get better service as well.
Walmart would need a massive improvement on their web/storefront, and a big shipping infrastructure so people don't have to waste time in those horrid stores.
Originally Posted By: Johnny2Bad
Amazon does try hard, but their business model is fragile and depends on low-cost shipping. Now, that isn't a problem if it's Amazon vs Online resellers, as Amazon can always get a good rate via contract vs any smaller player. Their "Achilles Heel" is shipping has to remain inexpensive enough vs Bricks-and- Mortar stores, as this is their current model for further growth.
Apple just reported their first quarter earnings; both companies are stock-valued equally (about one $US Billion). However, Apple's net profit exceeded all Amazon's profits ... we're talking more than every dime Amazon has made since incorporation, added together.
Obviously one company has much higher costs than the other. Amazon has to be careful they don't find themselves on the wrong end of a shipping price increase (such as the one that is imminent from the USPS, as they are struggling to make the $7 Billion quarterly payment to the US Treasury they are obligated by law to make). If the USPS raises rates, every other courier will as well.
I hope the USPS does put the screws to Amazon. And I hope Walmart eats Amazon's lunch. If done right they could very well do it. They have warehouses (stores) nearly everywhere in America and with a little investment could ship same day out of them at a lower cost than Amazon.
I'm also no fan of Bezos and his plan to take over nearly every industry - that leads to less competition and often higher prices. It's starting to happen to Amazon - they are often not the lowest cost for many items.
I use Amazon as the retailer of last resort - I'll actively search for and pay more for stuff than use Amazon. Local is first and many times I get better service as well.
Walmart would need a massive improvement on their web/storefront, and a big shipping infrastructure so people don't have to waste time in those horrid stores.
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