3 ms·
Amazon's stated goal is to have no margins (Bezos 'your margin is my opportunity'). So yes if they are following their zero margin strategy they should be lowe
by jonbarker 9y ago
Amazon's stated goal is to have no margins (Bezos 'your margin is my opportunity'). So yes if they are following their zero margin strategy they should be lower than WMT, whose only claim is low price. If something is cheaper elsewhere it is because Amazon has not figured out how to deliver that particular item to the consumer at cost yet. So for example if you find something cheaper at WMT it may be that WMT has a great distributor license and is an exclusive channel, something like that.
- tome 9y agoHuh? So how does Amazon actually make money?
- bb611 9y agoThey don't have no margin (i.e. nothing is 'at cost' as GP presumes), they just have very low margins which they make up for with high volume. It's not that novel, but Bezos has created a company with tolerance for lower margins.
- snark42 9y ago> Huh? So how does Amazon actually make money? They sell at/near their cost (including warehousing, delivery, technology, etc.) which is lower than the cost of Walmart's brick and mortar presence. Costco also sells at cost, almost all their profit is from membership fees (see Amazon Prime for Amazon's take on this.)
- mcguire 9y agoWhen did they start making money, again?
- jartelt 9y agoThey have posted a profit the last 8 quarters.