AMAZON SELLS COMPUTERS

Amazon has opened up an online store for selling computers from major manufacturers – Compaq, HP, IBM, Toshiba, and Apple. Amazon inked a deal with Ingram Micro, the number one wholesale distributor of computer products, which minimizes Amazon’s exposure to inventory problems. Amazon’s web site collects the order, Amazon ships money to Ingram Micro, and Ingram Micro handles logistics and shipping. That’s the same scheme that Buy.com set up, and it works like a charm from the consumer’s point of view – Ingram Micro is frighteningly efficient at distribution and shipping. (Buy.com is nearly bankrupt, but its business plan focused on underpricing everything, so Amazon might not follow its example quite that far.)