Was 100% true years ago. Now it's less so. With Amazon, as with local retail, there are people who are willing to pay more simply for the convenience. Elastici

Was 100% true years ago. Now it's less so. With Amazon, as with local retail, there are people who are willing to pay more simply for the convenience. Elasticity varies by category and item, of course, but people would be surprised just how many manufactures do undercut retailers and distributors that they sell to. Part of this is that retail has tried to maintain its >50% margin for items that it doesn't even sell in store anymore. Manufactures know this and effectively cut their discount by selling an item $10 themselves, while only giving the retailer 40% discount. Retail still wants their >50% margin, so they will sell that same item for $11 both online and at B&M. In many cases this actually works out well for everyone. You would think that everyone would just buy direct and save a dollar, but you'd be surprised how many people want the convenience or simply have loyalty to a retailer for some reason.