Discussion in 'UPS Discussions' started by Dracula, Oct 23, 2014.
Surprised it took this long.
Everybody loves cheap stuff on Amazon. Sounds like it's too cheap. Sooner or later, your cheap prices have to turn into profits. Otherwise, you go tits up.
They'll just blame UPS again.
When they roll out those delivery drones, they'll start turning a profit then, I'm sure of it. I'm sure!
Sounds their problems are way bigger than UPS or FedEx.
For 20 years they haven't hauled in even one year of actual profits. And this is just now starting to worry the savviest investors?
My son ordered something the other day and was offered the same day delivery option for an extra eight bucks so he tried it. Three hours later, a Lazership van pulls up for a delivery attempt and he wasn't home. The driver called him and made a second attempt a couple hours later and caught him in. I don't see how they will turn a profit like that.
Here's the best part. Bezos has admitted they won't be around forever so let's give the company a generous life span of 50 years. Well they are already almost halfway there and haven't turned a consistent profit.
Maybe Bezos is thinking (among others) that they the years they do turn profits will be completely insane, Walmart-style levels, and beyond. The longer this continues, though, the more the employees and investors will become impatient.
That seems hard to picture. They already fill our trucks, FedEx's trucks and mail vans. With all of their sales, it's hard to imagine how much larger their sales need to be to make big profits. Some of their ideas to turbocharge their business are far-fetched. Drone shipping? Please...a publicity stunt. Selling groceries? That's a niche move, at best.
I don't think Amazon is going away. But they're going to have to change, eventually.
I agree. Established grocers like Stop & Shop already have the market locked down in most of the county and you want someone delivering your eggs who delivers your lazy boy chair?
Amazon wastes it's money on too many concepts instead of just finding a model that works and excelling at it. They're also trying to be too big of a conglomerate. They are into almost everything you can think of now. One cannot be the best plumber, physician, lawyer and electrician. Pick something and do it better than anyone else.
This is why they are hoping the kindle or some of their in house entertainment make it big.
A good profit margin for a retailer is about 10%. Amazon is so jealous of the Google facebooks of the world it isn't even funny.
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