Amazon.Time Bomb?

One of the "small business" or "internet minute" reports on my local all-news radio station did a story today on how Amazon.com is a ticking time bomb. The commentary guy felt that since at some point, authors (he used Stephen King as an example) will eventually sell their books directly through their own websites (individually), Amazon.com would "explode." Amazon.com is a model for many of a successful, interesting, and certainly exciting internet business - could this be true?!?!?! I don't think we're going to see Amazon.com go out of business any time soon... I see each reason why not as a model of something that might help your business stay out.

1. Diversification
If all Amazon.com sold were books, and all you or each author had to do to put Amazon.com out of business would be to sell them yourself, then maybe they'd be in trouble. But considering they sell music, videos, the loosely-termed "gifts," and now have auctions as well, they provide more reasons than "books" for people to visit their site and use their services. This is why some hosting companies offer website development and why the local dog grooming place sells puppy toys... while you're here and using us anyway, you may also want...

2. Sale Price
To help you get over the idea that you have to pay for the book to get from Amazon's secret locations to your hands, the books are highly discounted from their usual retail price. Well, they probably also give a lower price based on the sheer bulk of business they are doing in a pretty easy way! This means that they may be selling Stephen King's book for less than he may plan to.. I mean, he'll have to factor in shipping and handling costs as well as some sort of figure to cover the cost for whomever is going to fulfill these orders! I can't imagine Mr. King himself will be boxing and posting your order.

3. Business Model
1998 figures: 2100 employees, over $1 billion (USD) in revenue, 8 million customers worldwide. Stock prices, when at their highest, were ten times earlier opening prices. They are doing something right. :) Part of what makes this model work is that fact that they don't have to pay for having actual stores like their main competitors. Barnes and Noble, for example, has to pay for retail space, utilities, stocking each location, training and payment of staff, coffee (in some locations) and whatever it takes to run and clean cafes and bathrooms, et cetera. So if vegetarian cookbooks don't sell well in Texas, Amazon really doesn't care. :)

Go To Page: 1 2 3