Amazon.com: E-Tail or Fairy Tale?

Amazon.com: News update 09/19: Yahoo replaces Amazon with BarnesandNoble.com 09/29: Price sensitivity test causes confusion for customers 10/03: NSM (Microsoft) customers can now link and order on Amazon.com 10/10: single website for Sotheby and Amazon 10/31: Japanese website 11/14: new store for e-books 11/28: new wireless phone store 12/00: Amazon starts selling DIRECT_TV 01/01: net sales $960 M for 2000, $670 M for 1999 loss $0.23 for 2000, $0.96 for 1999 per share

Amazon.com: Does the M&A investment pay?

At least 210 Dot-com companies closed or filed for bankruptcy in 2000 Dot-com misery At least 210 Dot-com companies closed or filed for bankruptcy in 2000 Company Date Pets.com 11/07/2000 Living.com 08/15/2000 Data: The Standard.com; Webmergers.com

Dot-com layoffs Layoffs hit 40,660 during 1999-2001 Data: The Standard.com

Can they make it? The game of cash flow Data: Business Week, Oct. 23, 2000, p EB 34

Amazon: stock performance Source:

Amazon & Toys ‘R’ Us: The venture of clicks-and-bricks Amazon.com Toysrus.com Tasks: Handles shipping and customer service, sends the customers to a joint store on Amazon’s web site. Biggest challenges: Ensures seamless fulfillment with Toysrus.com’s Coordinates placement of product in distribution centers Tasks: Picks the toys and uses its buying power of its brick stores Handles the placement of product on the site Biggest challenges: Balance the supply to its brick stores and the web site Get people to buy multiple product Ref: Business Week, Oct 23, 2000, pEB 44

Amazon & Toys ‘R’ Us: The payoff of clicks-and-bricks Amazon.com Toysrus.com Eliminate inventory management risk Gain three revenue streams: revenue share on product sold up-front fee payments for S & H Offloads burden for online infrastructure, distribution & customer service Quicker profitability 2 years ahead of plan Ref: Business Week, Oct 23, 2000, pEB 44