In Amazon's case it's not using VC money to outcompete similar businesses, it's using their own money to demolish any competitors in the thousands of niche cate

In Amazon's case it's not using VC money to outcompete similar businesses, it's using their own money to demolish any competitors in the thousands of niche categories they sell products for. The diaper.com thing is the most popular example, Amazon tried to buy daipers.com, daipers.com said no, amazon sold their own diapers for such a low price they were losing money on each sale in order to put diapers.com out of business or nearly out of business. Forget how it ends, either diapers.com went out of business, or they had to sell to Amazon in the end for a small percentage of the original offer