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Could you elaborate? I don't seem to grasp your point. >AWS cross subsidization powers AMZN retail to be able to run at a <1% margin. I've never truly underst
by moralestapia 4y ago
Could you elaborate? I don't seem to grasp your point.
>AWS cross subsidization powers AMZN retail to be able to run at a <1% margin.
I've never truly understood that number, how come they have such low margins where most of the products I see there have a 10-20% markup (at least) vs. the same product in classic "offline" retailers (costco, walmart, etc...)?
"But they send it to your home", yeah but they charge you for that too.
- Spivak 4y agoBecause in my area Amazon (including amortized cost of prime) is always cheaper and this includes wholesale clubs like Costco and GFS. Like if you need something right now the usual story is to go to a physical store and have them price match Amazon for a 10-30% discount. If I could save money by not shopping on Amazon it would be a no-brainer but it isn’t. Like I’m paying less for the conscience of having it shipped to me.