I'd assume they have volume discounts or negotiated rates with Amazon that bring that point forward. There's an entire sub industry of billing partners who are

I'd assume they have volume discounts or negotiated rates with Amazon that bring that point forward. There's an entire sub industry of billing partners who are profitable enough just offering eg 8% off retail prices. In my experience Amazon can be difficult to negotiate with directly if you're not willing to commit to YoY spend growth. It's easier to deal with billing partners. Why orgs wouldn't go to Amazon directly via retail is the 3 year commitment that comes with RIs. 20% over the discounts is a bit steep imo but I'm sure there's a market for RIs as a service (particularly if the RI pricing they charge is the 100% upfront covered by their own internal funds)