Gyroscopic Investing

Posted: **Thu Oct 23, 2014 6:14 pm**

Huge loss posted by Amazon.
I hope our Melvey is ok.

Posted: **Wed Nov 04, 2015 2:36 pm**

Amazon Killed the Bookstore. So It's Opening a Bookstore.
http://www.wired.com/2015/11/amazon-kil ... tore/  [ WIRED ]

Posted: **Wed Nov 04, 2015 2:50 pm**

I ordered something from Amazon last night at 3:30am and it was delivered today at noon and the shipping was free.

I love Amazon.

Posted: **Wed Nov 04, 2015 3:02 pm**

It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.

That quoted article in the OP is unfair btw. Amazon may "pressure suppliers for the lowest possible prices", but I haven't found that Amazon's prices are anything spectacular. I tend to shop around for big purchases and usually do better than Amazon's price - sometimes a lot better. But for the small stuff, I am willing to pay a bit more for the convenience and quick shipping. Also I just want to avoid giving my credit card information to Yet Another Possibly Insecure Website, and my contact info to Yet Another Site That Sends Me Nonstop Spam For Life just because I bought some $5 widget.

Posted: **Wed Nov 04, 2015 3:17 pm**

That's true, WiseOne. Their book prices are good but a lot of stuff, like hardware, is often priced lower at local stores.

Posted: **Wed Nov 04, 2015 3:31 pm**

WiseOne wrote: It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.

That quoted article in the OP is unfair btw. Amazon may "pressure suppliers for the lowest possible prices", but I haven't found that Amazon's prices are anything spectacular. I tend to shop around for big purchases and usually do better than Amazon's price - sometimes a lot better. But for the small stuff, I am willing to pay a bit more for the convenience and quick shipping. Also I just want to avoid giving my credit card information to Yet Another Possibly Insecure Website, and my contact info to Yet Another Site That Sends Me Nonstop Spam For Life just because I bought some $5 widget.

It's also gotten to the point where Amazon actually is starting to create a lot of local jobs. In my area, Amazon employs a ton of people in its distribution facilities, it employs hundreds of couriers, it spends a lot of money maintaining its facilities, and it pays a lot of local taxes.

As far as pressuring suppliers to provide low prices, I'm okay with that. If people don't want to do business with Amazon, they don't have to.

Posted: **Wed Nov 04, 2015 5:53 pm**

WiseOne wrote: It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.

Like all the booksellers I buy my books from for .01 plus the fixed $3.99 S/H? How do they even stay in business, I wonder.

I would love to go into that business but I don't think its a productive use of my time.

Posted: **Wed Nov 04, 2015 6:04 pm**

MachineGhost wrote:
WiseOne wrote: It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.
Like all the booksellers I buy my books from for .01 plus the fixed $3.99 S/H? How do they even stay in business, I wonder.

I would love to go into that business but I don't think its a productive use of my time.

USPS media rate and < 13 oz first-class shipping. Total shipping cost is way less than $3.99, so that's where the profit comes from.

Posted: **Wed Nov 04, 2015 6:25 pm**

Pointedstick wrote:
MachineGhost wrote:
WiseOne wrote: It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.
Like all the booksellers I buy my books from for .01 plus the fixed $3.99 S/H? How do they even stay in business, I wonder.

I would love to go into that business but I don't think its a productive use of my time.
USPS media rate and < 13 oz first-class shipping. Total shipping cost is way less than $3.99, so that's where the profit comes from.

This is why it's so important to sort by price+shipping cost. I once saw some electronic doodad for like $1 + $70 shipping.

Posted: **Wed Nov 04, 2015 6:49 pm**

WiseOne wrote: It's amazing what the free market can accomplish. That's basically what Amazon is - a giant, level playing field. Think how many small online businesses have cropped up purely because Amazon exists.

Interestingly, I know an author who complains because Amazon has secret rules for certain types of books that they will not publish unless they come from major publishing houses, even though he claims there is a big market for such books.

I told him "Well, if there is a big market for this type of book, then someone should set up a web site to handle it", to which he said "There are web sites like that, but they get no business because everyone goes to Amazon". My reply was "Then these supposed customers obviously don't care enough about these books to find those websites." He didn't have much of a reply to that.

Posted: **Wed Nov 04, 2015 8:22 pm**

Pointedstick wrote: USPS media rate and < 13 oz first-class shipping. Total shipping cost is way less than $3.99, so that's where the profit comes from.

You have to account for Amazon's fees (also packaging and labor). It's fixed for books at $1.35. It doesn't leave a lot profit left after Media Rate which is $2.69 up to a lb, but they only send one or sometimes two books at that rate. Even First Class is $2.32 to $4.12, but I rarely see that used. Just not worth it. There's not enough volume in used books.

Posted: **Wed Nov 04, 2015 9:46 pm**

MachineGhost wrote:
Pointedstick wrote: USPS media rate and < 13 oz first-class shipping. Total shipping cost is way less than $3.99, so that's where the profit comes from.
You have to account for Amazon's fees (also packaging and labor). It's fixed for books at $1.35. It doesn't leave a lot profit left after Media Rate which is $2.69 up to a lb, but they only send one or sometimes two books at that rate. Even First Class is $2.32 to $4.12, but I rarely see that used. Just not worth it. There's not enough volume in used books.

On the other hand, I can order a random electronic doodad for $.99 shipping included direct from china. How do THEY make money?

Posted: **Wed Nov 04, 2015 10:50 pm**

dragoncar wrote: On the other hand, I can order a random electronic doodad for $.99 shipping included direct from china. How do THEY make money?

But a dollar has 75% more purchasing power in China than here. And the USPS subsidizes shipments from China at low rates.

Posted: **Wed Nov 04, 2015 11:00 pm**

MachineGhost wrote:
dragoncar wrote: On the other hand, I can order a random electronic doodad for $.99 shipping included direct from china. How do THEY make money?
But a dollar has 75% more purchasing power in China than here. And the USPS subsidizes shipments from China at low rates.

So when they make 1 cent it's really 1.75 cents. cool

Posted: **Thu Nov 05, 2015 1:24 pm**

dragoncar wrote: So when they make 1 cent it's really 1.75 cents. cool

LOL! No, it's .75c.

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