I've suspected for a long time that a lot of things we think of as normal are subsidized by all the investment money floating around which causes companies to make all their products loss leaders to drive up revenues.
I've written at length a few times about it, but one example I wrote about yesterday was sending 4 boxes out. It cost me over $100 to ship them out, but amazon shipped them to my house for free. They're selling a $100 bill for free to drive up volumes and revenues, but there's no way you can do that forever. It's a 3 day drive from my house to the nearest fulfilment center!
I've written at length a few times about it, but one example I wrote about yesterday was sending 4 boxes out. It cost me over $100 to ship them out, but amazon shipped them to my house for free. They're selling a $100 bill for free to drive up volumes and revenues, but there's no way you can do that forever. It's a 3 day drive from my house to the nearest fulfilment center!
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Yeah, and that's where I always figured the "everything store" and everything that comes with it is sort of a loss leader. Go ahead and lose money on the store, you're actually selling server space with the store as an example that your server space can do anything you want to do.