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The key word is profitable - it's a nut that Amazon hasn't cracked yet either.
by kristianc 9y ago
The key word is profitable - it's a nut that Amazon hasn't cracked yet either.
- nostrebored 9y ago??? This is wrong, Amazon's core business is profitable when not accounting for reinvestment into infrastructure
- kristianc 9y agoNot the case on CPG brands: > So let’s imagine Costco is selling a pack of 10 bags of Doritos for $10 — or $1 per bag. Amazon’s algorithm notes that one bag is $1 at Costco and, in turn, lowers the price on Amazon of a single bag of Doritos to $1. > That is a great deal for customers — something that is likely driving the decision at Amazon, where an obsession with customer value dominates its strategy. > But now, Amazon is selling individual items at Costco prices while not getting the same wholesale price that Costco enjoys. In short, it’s going to be really hard for Amazon to turn a profit on those goods. [1] https://www.recode.net/2017/3/30/14831602/amazon-walmart-cpg-grocery-price-war https://www.recode.net/2017/3/30/14831602/amazon-walmart-cpg...