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If I have you produce 100 widgets at $0.10/widget, and then ship each widget for $0.20/widget, and then sell each widget for $1.00, but Amazon takes a 30% cut..
by johnmaguire2013 6y ago
If I have you produce 100 widgets at $0.10/widget, and then ship each widget for $0.20/widget, and then sell each widget for $1.00, but Amazon takes a 30% cut...
- The shipping company received 2x what the producer received
- Amazon received 3x what the producer received
- I profited 4x what the producer received
So some capital is flowing to the poorer producers, but not nearly as much as is flowing to every single other person in the supply chain. And if the amount flowing to the producer is only the bare minimum required to live...