February 12, 2006

Cover detail

Limited edition from Subterranean Press.

Truth? Fiction? Journalism? Award Goes to . . . - New York Times

Journalists like to think of themselves as presenting as accurate a picture as they can of the real world.

The American Association of Petroleum Geologists takes a broader view. It is presenting its annual journalism award this year to Michael Crichton, the science fiction writer whose latest book, “State of Fear,” dismisses global warming as a largely imaginary threat embraced by malignant scientists for their own ends.

Excellent article from the estimable Randall Stross:

Trying to Get a Read on Amazon’s Books - New York Times

The Amazon experiment has been under way since 1995, and its core business is taking a good while to fulfill its promise. It has grown from books to products in 35 categories, but most of the original elements of the business model are intact: attract customers with a deep inventory that no retail store can match, offer discounted prices, provide easy navigation and whisk customers through a trouble-free checkout process that is the best in the business.

One important assumption has fallen by the wayside: unburdened by the weight of a network of retail stores, the company was supposed to enjoy low operational costs and good margins. Geography turned out to be a spoiler. A single centralized distribution center in Seattle meant that many customers found that a speedy one-click purchase online would be followed by a frustrating wait offline for the order to arrive. To reduce delivery times, Amazon had to make colossal investments building a network of distribution centers — 15 in North America alone. Amazon “is not as efficient” as the most efficient offline retailers, said Scott W. Devitt, an analyst at Stifel, Nicolaus in Manassas, Va.

Amazon has turned out to be an expensive operation to run, not only because of those distribution centers but also because of heavy subsidization of shipping that insulates customers from the actual costs. Quirky consumer psychology makes this necessary.