posted on January 30, 2001 11:20:54 AM new
They need to. They're in a death-spiral right now. They went into negative equity last year and the next stop is chapter 11.
posted on January 31, 2001 06:01:29 AM new
It's not a rumor. I heard on CNN this morning they just laid off 1300 employees.
Doesn't look good for sellers who are using Amazon. Only time will tell if they will even be around much longer. According to their financials they are showing a negative balance.
posted on January 31, 2001 08:10:59 AM new
I just read through a report summarizing all the financial information they released yesterday with the quarterly earnings.
IMHO there is no need to panic.
Amazon has sufficient capital on hand to last through approximately the next year, so could survive another year even if they never raise another penny of capital. I would not anticipate their closure under those circumstances seeing as they can last until the next Christmas season which they anticipate will be profitable.
Marketplace is very profitable for them, cutting back on their distribution centers is a good idea for improving profitability and could help us small sellers who stock and sell the goods for Amazon
Belt tightening can be good in the long term for Amazon. If they didn't tighten their belt I would worry more about that.
I intend to double my listings on Amazon and hope they expand Marketplace to other items. JMHO.
