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>Why didn't FedEx, UPS, and USPS cut/drop prices in order to be competitive? Amazon retail operates at basically 0 margin. It is very difficult to compete wit
by treis 6y ago
>Why didn't FedEx, UPS, and USPS cut/drop prices in order to be competitive?
Amazon retail operates at basically 0 margin. It is very difficult to compete with them given their scale and willingness to forgo profit. The writing was on the wall once Amazon decided they wanted to handle their own shipping. No way Fed Ex et.al. could be competitive on price and make money.
- ABeeSea 6y agoThis is not true. Amazon’s physical retail in NA has made a profit for a long time.
- me_me_me 6y ago- Amazon what is your business domain? - Yes Its scary what amazon will be in the future.
- aglavine 6y agoWe need to break it.
- Florin_Andrei 6y agoYes. It's at the point where it can strong-arm large chunks of the economy. That's too much power in the hands of a single for-profit entity.
- missedthecue 6y agoThey should only bring efficiencies and competition to a few places that 70 year olds in Washington permit them to?
- kooshball 6y ago>Amazon retail operates at basically 0 margin. This may have been true in the past but it's not an accurate any more. Especially the way you're phrasing it like how they don't make any money. Profit is low because they're using the cash flow to make further investment. Not because each item sold is not making any money.