“… Amazon also connects centralized supply with scattared demand, but the genius of its model is that the customer and store dont have to be in the same place. Ironicaly, that makes it more likely that supply and demand will actuallyconnect. Regardless , even if they dont, Amazon bears none of the costs-the surpluss stock simply depreciates on the shelves of a third party.
As this program continues to grow, Amazon gets closer and closer to breaking the tyranny of the shelf entirely. It doesnt have to guess ahead of time where the demand is going to be, and it doesnt have to guess how big the demand will be. All the risk within the marketplace program is outsourced to a network of small merchants who make their own decicions, based on their own economics, on what to carry.” (pg 94)