Seeking Alpha

Amazon (AMZN) announces it's launching a new entertainment collectibles store which will feature...

Amazon (AMZN) announces it's launching a new entertainment collectibles store which will feature a wide range of film and TV memorabilia. The company appears to be looking to bring merchants over from eBay's site where the category is quite lively.
Comments (4)
  • maximumvalues
    , contributor
    Comments (475) | Send Message
     
    LOL... when is AMZN not announcing something? How many businesses can they be in and not make a profit. Synergies rarely occur for a company that fails to focus. This company has ADD.
    19 Feb 2013, 10:41 AM Reply Like
  • streetwatcher
    , contributor
    Comments (76) | Send Message
     
    One can sell anything and everything on AMZN Marketplace, now. Can someone explain what is New in this announcement? Is the purpose to grab Headlines? I guess so long as they generate a twist and be in the news, making profit does not matter. AMZN share price increase will makes the company money.
    19 Feb 2013, 12:40 PM Reply Like
  • Surely
    , contributor
    Comments (204) | Send Message
     
    It's obvious that Amazon uses press releases through business news media as a form of free advertising. Hey, if they can do it I say more power to them. The business press needs to do a better job of screening what they release as news and stop acting as advertisers for the likes of Amazon, or at least start charging them.
    19 Feb 2013, 02:11 PM Reply Like
  • ibizwiz
    , contributor
    Comment (1) | Send Message
     
    Actually, going by the track record, AMZN is tightly focused, specifically on interactive retailing. Far from diverting management's attention or concentration for this core target, each acquisition has several common criteria:

     

    1 Offer added lines or item categories to the enormous existing AMZN customer base.
    2 Likewise, bring the new base, in this instance the sizeable collector community over to AMZN, naturally -- these folks nicely fit the primary AMZN target customer profile, being highly likely to get their books and apparel etc from the world’s dominant superstore.
    3 Be able to benefit virtually immediately from the solid AMZN selling and servicing platform. One-click purchasing, the highly desirable feature of using one’s Amazon account and credit card without needing to open another account, and the in-place customer servicing apparat all are examples of further economies of scale for AMZN.
    4 Bring many thousands of potential new smaller merchants to the still-newish and evolving Fulfillment By Amazon (FBA) service. This will mean added fee income for AMZN, more scaling of an existing investment, more prospective sellers who can quickly expand into other Amazon categories.
    5 Similarly, open up the extremely cost-effective Webstore service to many thousands of collectibles sellers who want their own online identity, apart from the rigid confines of an eBay platform. Again, more steady fee income for AMZN, at very little cost, since the Webstore is probably the most easily scaled service in the AMZN platform.

     

    Willy-nilly acquisitions simply to excite the investor community, or buy time for a business in trouble, or to try and change horses in mid-stream -- these are examples of a management losing its focus on its core knitting. Amazon’s purchase of Zappo’s is precisely NOT such an instance. Its launch of My Habit is no random shot in the marketing darkness, either.

     

    Planned growth into logical extensions of one’s fundamental business, based on existing investment and infrastructure and people-power, represent a depth and intensity of focus that only a very few companies have ever achieved and then, as has AMZN, sustained though several market cycles.

     

    AMZN’s total concentration on its chosen business area forces management to work at being the leading innovator in that area, and the low-cost services provider over time.

     

    Longer term, it forces AMZN’s leadership to think constantly how interactive retailing will evolve over the next two, even three decades. Only by confidently forecasting how (mainly) women will want to buy as their technology and delivery and servicing options change can AMZN make high-payback investments in its enormous platform. This is a level of forecasting intensity achieved by very few businesses in my experience.
    19 Feb 2013, 01:46 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|