Wednesday, December 26, 2007

Amazon On top again?

Christmas is by far the busiest or shopper infested season of all other seasons which, usually means big bucks for retailers all around. This year expectations drop on the offline part and moved to the online segment. What do this mean for retailers ,This means basically traditional companies such as Wal-Mart and Target dropped in potential profits ,which were offset for gains to online retailers like Amazon. Amazon starting from December 10 till Christmas had increased their purchasing of products by 35%.Amazon hasn't revealed how much overall profits,but Jeff Bezos Amazon's Ceo suspects that 4th Quarter earnings will likely be an increase of 28%. That is a lot too look forward too but on the other hand Target and Wal-Mart lost out in about 1-2% of potential earnings. Also Target assumed its earnings would be well over 5% can you say Target has missed it's target.

Remembering the early dot com days when Jeff Bezos Amazon's ceo was worth in 1999 about 10.1 billion dollars. Because everyone had high expectations for online retailers. This time I think the driving force for e-commerence is the extremely high gas prices since oil almost hit 96 dollars. Wow, some of the contributing factors also can go to innovative companies such as Nintendo with a 26 release of the Nintendo Wii and ds ,and Apple which the iphone and ipod speak for themselves.So whats my prediction, Well expect online retailers to keep raking in the cold hard cash .Your portfolio to receive good returns should have proportion devoted to tech stocks since they ever changing


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GDAEman said...


My girlfriend and I were discussing e-commerce recently. Our take was that you can now find exactly what you want on line, which isn't the case in brick storefronts.

Also, the shipping cost, as you note, is offset by the cost of gas.

Finally, over time, more people have become comfortable with shopping on line. For example, I recently shopped, ordered, paid for, and scheduled deliver of a washer and dryer on line. It arrived in a couple of days.

The fact of the matter is I COULDN'T contact the store by phone! The down side is that e-commerce, like automated checkout at the grocery store, is eliminating jobs. That's a topic we should cover in 2008.

Till then....

PS Looks like you've been getting junk mail comments, or nasty comments.

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