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Frankly, this is bullshit. If Amazon's business was such low margin, then how have they been able to have so much growth? The only answer, is that it isn't act
by cdash 5y ago
Frankly, this is bullshit. If Amazon's business was such low margin, then how have they been able to have so much growth?
The only answer, is that it isn't actually as low margin as commonly stated and instead we have a tax system with loopholes that allow businesses to make a "profit" but by "reinvesting" in themselves they don't have to pay any taxes.
- brainwad 5y agoBecause they cross-subsidise their unprofitable new markets with their profitable established markets, so overall the company makes (historically) a net loss. It's been a great strategy for Amazon and it is what the tax system is meant to incentivise - economic development instead of extraction.