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I read an article that Amazon has no profits most years [0]. Maybe that's the financial model they are going after. I share your view on this though, because un
by snowpanda 11y ago
I read an article that Amazon has no profits most years [0]. Maybe that's the financial model they are going after. I share your view on this though, because until they reach that point, they are running a big risk. It will be interesting to see how long they can keep it going.
[0] http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-n...
- seizethecheese 11y agoAmazon has no profits but bountiful cash flows. They make money on the margin when you buy something, they just invest it back into the business.
- coleca 11y agoThe difference is that Amazon had no profits in the early days because they poured money into improving their supply chain not selling products at a loss as a strategy. Drop shopping isn't the same as building your own supply chain out. There is no strategic advantage to be had placing orders with a drop ship network.
- bduerst 11y agoThe well-known reason behind that is because of Amazon's capex, not because Amazon is losing money on reselling inventory.