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Companies choose their profit margin. Amazon, at one point, had to decide to become like Nordstrom or like Walmart. They chose the Walmart route.. which is a fo
by rgbrenner 11y ago
Companies choose their profit margin. Amazon, at one point, had to decide to become like Nordstrom or like Walmart. They chose the Walmart route.. which is a focus on lowering prices (and therefore low margin).
Zappos may be in retail, but they are not low margin. Their gross margins (revenue - cogs) are roughly 35%. Compare that to Nordstrom - 37.5%. And coincidentally, Nordstrom also has a reputation for good working conditions.
- bjterry 11y agoCostco has a gross margin of ~13%, and is reputed to have very good working conditions.
- imcqueen 11y agoThe paid membership component makes that tough to compare, but I've also heard they take good care of employees
- lacker 11y agoWould you rather work at Costco, or at Amazon?
- bjterry 11y agoI would rather work as a retail employee at Costco than as a warehouse employee at Amazon. But I'd probably rather work at the job I'm most qualified for at Amazon than at Costco, because it would be better for my resume and presumably have more interesting technical work.
- Reedx 11y agoTrader Joe's seems to as well, and that's with razor thin grocery store margins. Employees are always so happy and helpful there. It's like night and day compared to places like... Safeway.
- slyall 11y agoGross margins don't really mean a lot where wage bills are a high percentage of costs. Think Starbucks or MacDonalds or many other fast-food places.
- paulcole 11y agoAmazon's biggest regret is probably connvincing people they have the lowest prices. It has led to this Walmart comparison that they likely hate. Best value: virtually always. Lowest price: not as often as you think.