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The genius here is also that Bezos doesn’t care. As soon as someone makes a cloud offering below what he can provide his retail margins increase. It’s a race t
by yazaddaruvala 9y ago
The genius here is also that Bezos doesn’t care. As soon as someone makes a cloud offering below what he can provide his retail margins increase.
It’s a race to the bottom and Amazon wins even at the bottom.
- RestlessMind 9y agoRetail is brutally competitive sector and you can't easily increase margins there (unless it is for luxury retail like Apple or Tiffany).
- inferiorhuman 9y agoOr until you move to someone else's cheaper cloud service.
- petra 9y agoMany prime members use Amazon without really comparing prices.
- londons_explore 9y agoIn my experience Amazon usually seems to be about 15% more expensive for most goods I purchase than the cheapest online retailer (usually Aliexpress). Taking a 15% margin on all products sounds pretty sweet to me...
- sharemywin 9y agoaliexpress takes 3-4 weeks to get to you and it's subsidized by US-China postal rates.
- sharemywin 9y agoThat's because Amazon is generally competitive. And they offer premium service. If people thought they would have to for that free "premium service" their growth rate would stall.
- sharemywin 9y agoeven in "monopoly" pricing theirs a sweet spot. There's always some kind of alternative.