Re: UKNM: Amazon.com... HOW MUCH???

[Tony Bowden]

On Sun, Dec 03, 2000 at 01:56:27PM -0000, James Westlake wrote:

> The major etail brands like Amazon have returned between 75-80% of total

> revenue into sales and marketing activities - massive difference to what

the

> traditional brands spend


Actually, this is not true.


Whilst many of the .coms which are now dead did this, Amazon never did.


In 1995 it was 39.1%

In 1996 it was 38.6%

In 1997 it was 27.1%

In 1998 it was 21.8%

In 1999 it was 25.2%

2000 so far is 22.8%


Also bear in mind that this includes things like credit card processing

fees and costs of building and running their distribution centres and

customer service centres, including all the wages costs etc. This is

not to be confused with a marketing figure, or indeed an advertising one!


Pure advertising spend has, for the past 2 years, been under 10% of revenue.


Tony

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 Tony Bowden |

tonyblackstar [dot] co [dot] uk

http://www.blackstar.co.uk/

  Black Star |    The UK's Biggest Video & DVD store * Free Postage

Worldwide

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