The past articles written about the company have mentioned that the diapers are indeed low margin items, but they try to cross-sell products that have higher ma

The past articles written about the company have mentioned that the diapers are indeed low margin items, but they try to cross-sell products that have higher margins (products like baby oil or soap). Since the box to send the diapers is already huge, the incremental cost of shipping these adjacent products is quite low (usually they can just throw them in the diaper box). It's a good strategy.