09-21-2007, 08:18 AM
From Randy Smythe:
full article: http://rksmythe.blogspot.com/2007/09/gro...mazon.html
Quote:I've spent the last year observing two ecommerce giants in eBay and Amazon and I have to say, from what I am seeing, Amazon has the advantage in this high stakes arena:...
2. They continue to grow their 3p (Third Party Seller) business which is a high margin business that enables them to manage their own inventory more effectively. They do not need to stock the Long-Tail as deeply as in the past. Why stock 10 Dido CD's when you can stock 3 and still sell 20 through 3P sellers. This approach is as much a sales tool as an inventory management tool. This also allows them to manage their own pricing more effectively...
full article: http://rksmythe.blogspot.com/2007/09/gro...mazon.html