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Amazon.com wasn’t really profitable. They ran at low margins for years. In 2006, their profit was like 500m against 10B in revenue.
by ec109685 5y ago
Amazon.com wasn’t really profitable. They ran at low margins for years. In 2006, their profit was like 500m against 10B in revenue.
- jethro_tell 5y agoBecause they were using all profit to build out EC2, fulfilment centers and fullfilment tech. It wasn't that there wasn't profit because the margins were low, there wasn't profit because they were pouring it all into different verticals and building moats. So yeah they weren't profitable but they weren't just scraping by either. I think that's one of those things that people miss when they compare a not-so-profitable startup to Amazon. The size, scale, and huge number of product markets that Amazon plays in is really pretty astounding for a company that is only 25 years old.