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Did you stop using AWS? Amazon's retail costs them money, AWS nets them profit. If you think about it, buying from Amazon is kinda like stealing from them.

by graphe 3y ago

waveBidder 3y ago
Retail only costs money because it's actively expanding. Or at least, that was true in like 2018 when I last read about it.
f1shy 3y ago
Do you have a source for that? Is that all around the world, or just in some countries? That really interest me.
- graphe 3y ago
  Many, heres one. https://fourweekmba.com/is-amazon-profitable-without-aws/ https://fourweekmba.com/is-amazon-profitable-without-aws/
  - Hackbraten 3y ago
    That's just the 2022 numbers, and not necessarily a good indicator for their overall performance?
malfist 3y ago
Why do people keep repeating that retail costs amazon money. Look at our earning reports, that is clearly not the case. Over half of amazon's profit comes from retail revenue. Internally, a lot of amazon retail revenue turns into AWS profit as amazon retail is AWS's biggest customer.
- buo 3y ago
  Besides, it's not just about profit. Retail is where they abuse workers, so it makes sense not to do business with that part of the company.
  - Filligree 3y ago
    From what I’ve heard from a friend in AWS, it’s not exactly all roses over there either.
Hackbraten 3y ago
Are you sure about that? Web search results indicate that the 2022 net loss was likely a one-off, and they went back to being profitable last year? Besides, your individual purchase surely isn't costing them more money than you're spending on it?
- graphe 3y ago
  Yes. https://www.forbes.com/sites/petercohan/2023/04/28/amazon-stock-down-2-as-high-prices-slow-aws-growth/ https://www.forbes.com/sites/petercohan/2023/04/28/amazon-st... >Amazon’s online store revenues have been decreasing and its results for the first quarter — $106 billion in revenue worldwide — were “roughly flat” as its U.S. market share growth in e-commerce and Prime “stalled after years of high growth,” according to the Journal. Its global e-commerce business reported a $300 million operating loss.
  - radres 3y ago
    Global loss could be due to expanding FCs. Does not mean it is not a profitable business elsewhere.
TomK32 3y ago
I only had to use AWS for customers of mine, not for my own stuff. Also, did you search for my nickname and AWS? Interesting personality trait...
- graphe 3y ago
  No I didn't, I didn't know if you actually used it, but I see a few comments on GitHub now that you mentioned it!
bornfreddy 3y ago
Ha! I'm sure they wouldn't operate at a loss. They might be investing or having a bad year, but if they were losing money they would shut down the operations. Good point about AWS though.
slim 3y ago
no, it's like helping them seal their worldwide monopoly by denying your business to their competition
progbits 3y ago
Once a year around black Friday I start a new prime trial, order a bunch of heavily discounted stuff and cancel the membership. I'm pretty sure there aren't sufficient margins and they are losing money on my order (with the hope most people will keep buying/keep the prime membership).

Did you stop using AWS? Amazon's retail costs them money, AWS nets them profit. If you think about it, buying from Amazon is kinda like stealing from them.

by graphe 3y ago

Did you stop using AWS? Amazon's retail costs them money, AWS nets them profit. If you think about it, buying from Amazon is kinda like stealing from them.

waveBidder 3y ago

Retail only costs money because it's actively expanding. Or at least, that was true in like 2018 when I last read about it.

f1shy 3y ago

Do you have a source for that? Is that all around the world, or just in some countries? That really interest me.

graphe 3y ago
Many, heres one. https://fourweekmba.com/is-amazon-profitable-without-aws/ https://fourweekmba.com/is-amazon-profitable-without-aws/
- Hackbraten 3y ago
  That's just the 2022 numbers, and not necessarily a good indicator for their overall performance?

malfist 3y ago

Why do people keep repeating that retail costs amazon money. Look at our earning reports, that is clearly not the case. Over half of amazon's profit comes from retail revenue. Internally, a lot of amazon retail revenue turns into AWS profit as amazon retail is AWS's biggest customer.

buo 3y ago
Besides, it's not just about profit. Retail is where they abuse workers, so it makes sense not to do business with that part of the company.
- Filligree 3y ago
  From what I’ve heard from a friend in AWS, it’s not exactly all roses over there either.

Hackbraten 3y ago

Are you sure about that? Web search results indicate that the 2022 net loss was likely a one-off, and they went back to being profitable last year? Besides, your individual purchase surely isn't costing them more money than you're spending on it?

graphe 3y ago
Yes. https://www.forbes.com/sites/petercohan/2023/04/28/amazon-stock-down-2-as-high-prices-slow-aws-growth/ https://www.forbes.com/sites/petercohan/2023/04/28/amazon-st... >Amazon’s online store revenues have been decreasing and its results for the first quarter — $106 billion in revenue worldwide — were “roughly flat” as its U.S. market share growth in e-commerce and Prime “stalled after years of high growth,” according to the Journal. Its global e-commerce business reported a $300 million operating loss.
- radres 3y ago
  Global loss could be due to expanding FCs. Does not mean it is not a profitable business elsewhere.

TomK32 3y ago

I only had to use AWS for customers of mine, not for my own stuff. Also, did you search for my nickname and AWS? Interesting personality trait...

graphe 3y ago
No I didn't, I didn't know if you actually used it, but I see a few comments on GitHub now that you mentioned it!

bornfreddy 3y ago

Ha! I'm sure they wouldn't operate at a loss. They might be investing or having a bad year, but if they were losing money they would shut down the operations. Good point about AWS though.

slim 3y ago

no, it's like helping them seal their worldwide monopoly by denying your business to their competition

progbits 3y ago

Once a year around black Friday I start a new prime trial, order a bunch of heavily discounted stuff and cancel the membership. I'm pretty sure there aren't sufficient margins and they are losing money on my order (with the hope most people will keep buying/keep the prime membership).