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> 34% means that Amazon is keeping 34% of the retail price of the product as profit. <...> (Costco is much lower, with 15% selling margins) then later > But i
by jjtheblunt 5y ago
> 34% means that Amazon is keeping 34% of the retail price of the product as profit. <...> (Costco is much lower, with 15% selling margins)
then later
> But it's not different from traditional retail.
Aren't these contradictory?
- aidenn0 5y agoCostco is not traditional retail. If you compare Amazon's margins to Costco it will look bad, if you compare it to a cosmetics store, it will probably look good. The (now old fashioned) rule of thumb was 50% margins, but as GP pointed out margins are lower now. 34% is within the ballpark of a brick-and-mortar store.
- jjtheblunt 5y agothank you