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As Amazon's ad revenues increase, I expect them to gradually drop their prices, making it EVEN more impossible for other online retailers to compete. Amazon re
by nicodjimenez 8y ago
As Amazon's ad revenues increase, I expect them to gradually drop their prices, making it EVEN more impossible for other online retailers to compete.
Amazon retail's profit margin is 3.8 percent, on more than $51 billion in sales in 2016. They're probably thinking they can shrink this all the way down to 0, and make up the difference in ads.
The big question for me is when they will get into the search space. The growth of their ads business and Alexa's success is a massive threat to Google long term.