Amazing Amazon


#625

That HN poster is dead wrong.

Amazon’s retail number counts only the stuff Amazon sources and sells itself. If you have done any shopping on Amazon in recent years, you will notice most of the stuff on Amazon.com is sold by 3rd party sellers. For those sales, Amazon only counts the fees it charges the sellers, which is much lower than the gross sale receipt for 1st party sales, but at much fatter margin.

Amazon never broke out how much business 3rd party sellers are doing as it only reports the fees it charges. I have seen estimates pinning that at least as big as 1st party sales and very likely higher. So Amazon retail size is actually more than 2x reported.

Amazon’s FBA division is actually much more dominating than AWS as it has zero competitor at scale. Amazon is an online retail platform, Walmart is just a retailer.


#626

So AMZN wants to give the impression that it has plenty of growth potential, sneaky Jeff.

Only 2x? Should be 20x :slight_smile: That is to say, near saturation (or is it near full penetration?)


#627

FBA is over 50% of unit volume.


#628

I didn’t know amazon broke out the unit volume. My guess is about right. Going forward I expect the 3rd party share continues to go up simply because it earns such fat margins.

It’s a shame the tech press didn’t pay much attention to FBA. There’s simply no other player at that scale. Walmart has 3rd party sellers but no fulfillment service. It’s insanely hard and capital intensive to build out that infrastructure.


#629

Yup, and the savings in last-mile delivery cost is significant.


#630

Amazon Wants India to Shop Online, and It’s Battling Walmart for Supremacy

The prize is 1.3 billion customers.

https://www.bloomberg.com/news/features/2018-10-18/amazon-battles-walmart-in-indian-e-commerce-market-it-created?srnd=premium


#631

What, so fast??? I thought the homeless was going to crap up this idea???


#632

homeless in US is not that smart, give them some time eventually they’ll figure it out. or next time you see one you can start educating them.


#633

#634

Come on, isn’t the Costco pay back card like the ultimate best in this regard? Shoot, I think I am up to like 500 bucks coming back to me already and I still got months to go…


#635

I’m a fan of the Amazon Go stores. It’s such a hassle free experience with much higher quality stuff than a normal convenience store. I could see it becoming the standard in dense cities.


#636

There goes the Retail Clerks/Cashiers unions…


#637

Let’s be honest. You can’t afford to live in SF on those wages anyway.


#638

#639

Both GOOGL and AMZN today results. Stocks are suppose to skyrocket tomorrow based on their results. waiting eagerly !


We Are in Bear Market
#640

Didn’t end well


#641

Amzn Bombed. Anyone buying?

Signed,

@manch


#643

Both companies produced good profit margin, but 1 BLN revenue less from expected. Market brings down billions tomorrow.

I may buy some AMZN, GOOGL, NFLX (if less than 300) tomorrow.


#644

Watch out google and Facebook


#645

Place GTC buys for AMZN and GOOG at various price points. None for NFLX.