Nicolas Carr makes a series of good points…
“Amazon isn’t about to close down its physical warehouses, of course. But its digital warehouses could eventually become the center of its business. That may be good news from a financial perspective. Amazon has invested a great deal of money and ingenuity into fine-tuning its physical logistics operation, and that operation has given it an edge in online retailing, but the cost of storing, handling, and shipping physical goods has always been a drag on its profitability. That cost largely disappears when customers buy products as bits rather than atoms.”
Rough Type: Nicholas Carr’s Blog: Amazon’s river of bits
How about another plan? Amazon could spin off the logistics business. Remember, they have non-Amazon clients on their books. Once they reach a critical mass they could spin off the physical business and concentrate on the bits and bytes.
This also raises the possibility that the logistics business could be worth far more to FedEx, UPS and the others than as a seperate company.
“Adoption of Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3) continues to grow. As an indicator of adoption, bandwidth utilized by these services in fourth quarter 2007 was even greater than bandwidth utilized in the same period by all of Amazon.com’s global websites combined.”
Amazon Earnings Call Details: Web Services Use Up More Bandwidth Than Amazon.com; The Kindle is a Hit
See how many misunderstandings, errors and fact check mistakes you can find in here:
E-commerce: Jeff Bezos revolts against snooty French court
One per sentence?
Political Polarization During the 2008 US Presidential Campaign
Now can we have the same for email addresses in corporate address books?
If this is true it’s amazing. 27% of sales being the Wii. I suppose if you add iPods in that must be 80% of their business. Does that make all books “the long tail”?
So theÂ KindleÂ has been out a couple of weeks and it’s already a failure.Â Â Scoble has a long list of things that he wants to change on his blog;Â Dear Jeff Bezos (one-week Kindle review) Â« Scobleizer â€” Tech geek blogger.And even Slate has had a go;Â Can Amazon save the e-book? – By Harry McCracken – Slate MagazineÂ Before I go any further I need to point out that Scble’s idea of a social network is madness. Until everyone has one of these things, what is the point? It would just point out to everyone what a small market share of reading they have. This was the same issue that the Zune sharing functions have.However, there is a bigger issue here. All these reviews are from people that are interested in the technology not books. The EVDO functionality is magic to the average user, they can buy a book anywhere at anytime and they never sign a service contract. That is a real innovation, an innovation more important than the size of the Previous Page button!Roll on version two.Â