Maybe I have a hard time understanding this, but the whole discussion was how Amazon undercuts their competitors and runs the business with a small loss because

Maybe I have a hard time understanding this, but the whole discussion was how Amazon undercuts their competitors and runs the business with a small loss because they are looking at the long-term game. Saying that Amazon sells you customer service seems entirely unrelated. Yes, the might have better customer service and they might have more things (EBS, Route 53, etc) but they certainly do not undercut their competitors price-wise.