There's no way that 99% of the products on Amazon are not loss leaders. I don't think anyone else could compete.
Let's take two sets of low end earbud headphones. The same headphones, one of them is at the store in town and one of them I order on Amazon.
The earbuds in both cases start at a factory and then go to a distribution center.
From there, in one case the big box of earbuds travels to the local store where someone unpacks it and puts it on a shelf along with many other pairs of earphones. I walk in, I grab the earphones myself, I likely ring them up myself, I put them in my pocket and I drive myself home.
In the other case, at the distribution center they take out a box, remove my one pair of earphones, transport my one pair of earphones in a box to a distribution center in my city, and then pay someone to put them directly on my doorstep.
Now according to amazon, the latter costs exactly the same or less than the former. In my view there's just no way.
Have you ever sent out a package before? I know it's just a single package and there are probably bulk rates available for big businesses, but sending out a single package for me costs more than the pair of headphones costs in the first place, and not by a small amount.
So my stands for a very long time has been that there's something fishy going on. The biggest thing I can think of is that certain items make a lot more profit than others and subsidize the low cost items, and that virtually every part of Amazon's business is solely an advertisement for AWS where they make huge money at huge margins.
Let's take two sets of low end earbud headphones. The same headphones, one of them is at the store in town and one of them I order on Amazon.
The earbuds in both cases start at a factory and then go to a distribution center.
From there, in one case the big box of earbuds travels to the local store where someone unpacks it and puts it on a shelf along with many other pairs of earphones. I walk in, I grab the earphones myself, I likely ring them up myself, I put them in my pocket and I drive myself home.
In the other case, at the distribution center they take out a box, remove my one pair of earphones, transport my one pair of earphones in a box to a distribution center in my city, and then pay someone to put them directly on my doorstep.
Now according to amazon, the latter costs exactly the same or less than the former. In my view there's just no way.
Have you ever sent out a package before? I know it's just a single package and there are probably bulk rates available for big businesses, but sending out a single package for me costs more than the pair of headphones costs in the first place, and not by a small amount.
So my stands for a very long time has been that there's something fishy going on. The biggest thing I can think of is that certain items make a lot more profit than others and subsidize the low cost items, and that virtually every part of Amazon's business is solely an advertisement for AWS where they make huge money at huge margins.
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