[The Deadly]

My work is in massive trouble and has been for about 3 years now. We are clinging on for dear life and hoping for a buyout from a larger company.

My last company was like that, but they are a kitchen distributor and people don't buy kitchens when there's a recession on (let alone three). They were lucky, as they had an investment from one of their biggest suppliers (long story short, that supplier had two customers, my old employer and another one - both of which they now own), which prevented them from going under. Hope yours pulls through dude.

Yep I do too.

We are an independent company in a prime area for the service we provide so we are definitely investable and we have received two firm offers from a large company before but they were turned down by our short sighted owner. He is just a bitter old man who thinks its still 2006. With investment we would have a thriving business but pride has got in the way of common sense.

[Badger Mark]

Amazon and other online retail sites are killing brick and mortar companies here in the States as well. Personally I do A LOT of shopping via Amazon. Another wrinkle here is that Amazon, more often than not, doesn't charge state sales tax - each state in the US has it's own sales tax rate and there's a lot of variability. Some states have no sales tax at all and others have fairly high rates. But by buying online from Amazon, one can often avoid it altogether.

[R94N]

We have had controversy about corporation tax here as well. I'm concerned that as Amazon grows it will soon become the only major competitor.

[The Deadly]

Amazon should think about taking over HMV to monopolise things.

[dimtimjim]

Amazon and other online retail sites are killing brick and mortar companies here in the States

Personally I do A LOT of shopping via Amazon.

So, what you're saying is, you're killing brick and mortar companies over there...?

[Yudster]

*sigh* People's buying habits are not killing anything. Lack of innovation and strategic planning on the part of the retailers is signing their own death warrants.

[Boboff]

Wow hyperbole!

I have 3 Peacocks on my Lawn, and some snow, which is nice.

[Yudster]

You have peacocks? Wow! Peacocks!

[Boboff]

I know! 2 male and a female, very lovely visitors from the Neighbor, they have returned from whence they came!

[chrysostom]

Well, if you're in the delivery/courier industries you're safe!

[Bas]

Welcome to 1998!*

* The year Amazon UK started.

I read elsewhere that when they were trying to start in this country that Amazon wanted HMV to run their UK business in partnership with them, but were turned down as not being viable.

[Badger Mark]

Amazon and other online retail sites are killing brick and mortar companies here in the States

Personally I do A LOT of shopping via Amazon.

So, what you're saying is, you're killing brick and mortar companies over there...?

Yep, I can't deny it. The fact is Amazon almost always has the lowest price, and since I'm not wealthy by any stretch of the imagination, I've got to find the best deals. Sad but true.

[Yudster]

Amazon has just reported that Q4 sales last year were up 22% on the previous year, and sales of £13 billion in the last three months.

Its not the economy that's the problem for retailers, clearly.

[neilt0]

Amazon has just reported that Q4 sales last year were up 22% on the previous year, and sales of £13 billion in the last three months.

Its not the economy that's the problem for retailers, clearly.

And they made no profit. Any * idiot can do that.

[Yudster]

"However, net profit has actually shrunk, as the world’s largest retailer’s expansion (building 20 new distribution centres, and Kindle manufacture, in the main) raided Amazon’s pockets, taking net income for the three months to the end of December to $97m (£61.5m), down from $177m for the same period in 2011. That's a pretty miniscule profit margin, around 1%. No wonder bricks and mortar retailers can't compete..."

The point is that Amazon can operate and thrive on numbers like that quite happily - and my point was relating to the amount of money spent, and the fact that it has been spent at Amazon and not in the High street. Clearly any idiot CAN'T do that.

[neilt0]

"However, net profit has actually shrunk, as the world’s largest retailer’s expansion (building 20 new distribution centres, and Kindle manufacture, in the main) raided Amazon’s pockets, taking net income for the three months to the end of December to $97m (£61.5m), down from $177m for the same period in 2011. That's a pretty miniscule profit margin, around 1%. No wonder bricks and mortar retailers can't compete..."

The point is that Amazon can operate and thrive on numbers like that quite happily - and my point was relating to the amount of money spent, and the fact that it has been spent at Amazon and not in the High street. Clearly any idiot CAN'T do that.

http://www.engadget.com/2012/10/25/amaz ... n-revenue/

Amazon Q3 2012 earnings: $13.18 billion revenue, net loss of $274 million

Their growth is impressive, however some analysts are saying Amazon will never be profitable. I don't necessarily agree with that, but if you aren't required to make a profit or pay tax, it's less impressive. Retail can be a tough place to make money and if you then add shipping costs, it gets even harder. Losing money doing that is much easier, and they're pretty good at that.

[chrysostom]

Losing money, whilst becoming the preferred provider and dominating the market is the hallmark of big monetisation on the horizon.

It's likely that Amazon have got something big on the way in the next few years that will make a lot of money, but possibly lose a chunk of their audience.

[Yudster]

I think that right now the significance of the figures is the amount of money spent. £13 billion in three months in ONE PLACE does not indicate that a reduction in consumer spending can in any way be blamed for the demise of high street retailers. The money is out there and it is being spent - its up to the retailers to make people want to spend it with them. Amazon have clearly got that down.

[Boboff]

Yudster is of course correct on this one entirely.

Market share is very important, and the amazon model of high turnover small margin, only makes money when you "sweat your assets" when investing for growth this is not going to happen.

It's called long term planning, something even the best british high street retailers are not that good at.

In 1997 apple shares were like $3 dollars, they are now $600 - $700, they were making losses, and are now the 2nd biggest values company in the world.

Amazons next challenge will be once they start making money, managing investors expectations that this growth will continue ad infantrymen (I know but spell check said it was right, and it made me smile)

[R94N]

Amazon often reinvests back into their server infrastructure and into the business rather than sitting on the money like Apple does. That perhaps isn't as appealing to shareholders, though - generally they don't think long term.