Amazon retail has gross margins of 37% and net margin of, lets say 3.7%. That means it cost it 63% to buy products(on credit like terms), and 33.3% to fullfil

Amazon retail has gross margins of 37% and net margin of, lets say 3.7%. That means it cost it 63% to buy products(on credit like terms), and 33.3% to fullfil orders. So from a risk terms we can say their margin is equivalent to 3.7/33.3 = about 10%. Which isn't bad. Furthermore, a lot of those costs are variable costs, like shipping, which go down if demand drops.