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Sold after they were practically run out of business by Amazon's pricing. > Quidsi could now taste its own blood. At one point, Quidsi executives took what the

Sold after they were practically run out of business by Amazon's pricing. > Quidsi could now taste its own blood. At one point, Quidsi executives took what they knew about shipping rates, factored in Procter & Gamble’s (PG) wholesale prices, and calculated that Amazon was on track to lose $100 million over three months in the diaper category alone. You're right it has not been demonstrated. Maybe some governing body should investigate and come to a conclusion about whether Amazon engages in unfair methods of competition such as what is purported by Quidsi.

danielmarkbruce 4y ago
Is a retailer now obliged to run every single product they sell at a profit? So Costco can't do their chicken deal (which costs them millions and customers love), nobody is allowed loss leaders?
- enragedcacti 4y ago
  Generally speaking, no. https://en.wikipedia.org/wiki/Predatory_pricing https://en.wikipedia.org/wiki/Predatory_pricing
  - danielmarkbruce 4y ago
    It was tongue in cheek. I'm saying: Amazon's diaper thing was the same as Costco's chicken thing. Retailers shouldn't be obliged to run every single product at a profit just in case there is a single product retailer.
    - enragedcacti 4y ago
      I'm saying that no one ever said you shouldn't be allowed to do loss leaders. Predatory pricing is a specific set of actions in a specific context that happen to do with selling products at a loss for a period of time. e.g. Driving a car is legal, driving the getaway car for a bank robbery is not.
      - danielmarkbruce 4y ago
        I believe you have a good understanding of the nuances here. But I also believe that the nuances can be used by career hungry folks at the relevant agencies to bring bogus cases against companies almost at will (current case against Meta is an example) and any extra power granted (or taken) is a bad thing.
WalterBright 4y ago
> You're right it has not been demonstrated. That's right. Quidsi had no particular insight into Amazon's cost structure.

danielmarkbruce 4y ago

Is a retailer now obliged to run every single product they sell at a profit? So Costco can't do their chicken deal (which costs them millions and customers love), nobody is allowed loss leaders?

enragedcacti 4y ago
Generally speaking, no. https://en.wikipedia.org/wiki/Predatory_pricing https://en.wikipedia.org/wiki/Predatory_pricing
- danielmarkbruce 4y ago
  It was tongue in cheek. I'm saying: Amazon's diaper thing was the same as Costco's chicken thing. Retailers shouldn't be obliged to run every single product at a profit just in case there is a single product retailer.
  - enragedcacti 4y ago
    I'm saying that no one ever said you shouldn't be allowed to do loss leaders. Predatory pricing is a specific set of actions in a specific context that happen to do with selling products at a loss for a period of time. e.g. Driving a car is legal, driving the getaway car for a bank robbery is not.
    - danielmarkbruce 4y ago
      I believe you have a good understanding of the nuances here. But I also believe that the nuances can be used by career hungry folks at the relevant agencies to bring bogus cases against companies almost at will (current case against Meta is an example) and any extra power granted (or taken) is a bad thing.

WalterBright 4y ago

> You're right it has not been demonstrated. That's right. Quidsi had no particular insight into Amazon's cost structure.