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Death of the LGS
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<blockquote data-quote="mlund" data-source="post: 4349729" data-attributes="member: 50304"><p>The overhead involved with Inventory, in all likelihood. That's pretty much the reason why no company can get into the "selling every product in the world at the lowest possible price" game. Many products just sit around too long and have wild shifts in demand.</p><p></p><p>Look what happened when Amazon couldn't deliver enough 4th Ed stock on time: people canceled their orders and bought elsewhere.</p><p></p><p>Now compare this to the company that made 4 million Atari ET Game cartridges and only sold 1.5 million ever, or that local Magic shop that <strong>still</strong> can't sell their back-stock of Homelands.</p><p></p><p>Amazon needs to move a lot of volume without having a lot of stale inventory to manage or exposing themselves to the risk of a massive over-stock. So they'll be all over products with reliable sales and inelastic demand, and they'll avoid products with more nebulous sales trends and more niche markets. Basically, they cherry-pick the cash-cows that involve the least work, the least support, and the least turn-around time.</p><p></p><p>- Marty Lund</p></blockquote><p></p>
[QUOTE="mlund, post: 4349729, member: 50304"] The overhead involved with Inventory, in all likelihood. That's pretty much the reason why no company can get into the "selling every product in the world at the lowest possible price" game. Many products just sit around too long and have wild shifts in demand. Look what happened when Amazon couldn't deliver enough 4th Ed stock on time: people canceled their orders and bought elsewhere. Now compare this to the company that made 4 million Atari ET Game cartridges and only sold 1.5 million ever, or that local Magic shop that [B]still[/B] can't sell their back-stock of Homelands. Amazon needs to move a lot of volume without having a lot of stale inventory to manage or exposing themselves to the risk of a massive over-stock. So they'll be all over products with reliable sales and inelastic demand, and they'll avoid products with more nebulous sales trends and more niche markets. Basically, they cherry-pick the cash-cows that involve the least work, the least support, and the least turn-around time. - Marty Lund [/QUOTE]
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