Monday, December 04, 2006

Fixed costs

Amazon aims to remove the fixed cost from business making is easy, in theory, for anyone to start up a business.
Amazon's new direction:
"You can rent space on Amazon's computers to run a business, or rent out its transaction capabilities to sell things and collect money, or rent pieces of its warehouses and distribution system to store and ship items — or all of the above.
So, with almost no start-up costs, anyone anywhere could become a retailer. It's not just contracting with Amazon to sell your stuff, the way Target does. It's leasing pieces of Amazon to create something totally unrelated to Amazon.
'We can take all the things that used to be fixed costs and let people pay by the drink,' Bezos says. 'It's letting people create a business by remote control.'"

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