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Perhaps I don't understand the money side of things enough to comment but I think Amazon is doing a hell of a lot more than undercutting competition by withhold
by shirro 14y ago
Perhaps I don't understand the money side of things enough to comment but I think Amazon is doing a hell of a lot more than undercutting competition by withholding profit from shareholders. They are identifying vulnerable businesses and totally reinventing them. While they are out there conquering the world I can understand why shareholders would be happy to see them reinvest in their business.
- crististm 14y agoyou know, Amazon is not Prince Charming
- paulhauggis 14y agoIt's more than just this. They also undercut their own third-party sellers and use them to find profitable products. This happened to me all the time when I sold products in the Amazon marketplace.
- jfb 14y agoBut they eventually will have to make money, or (so orthodox thinking goes), the rational market will punish them. I am skeptical to the point of open cynicism over rational market theory, but that's the point that Yglesias is trying to make.
- Lio 14y agoAmazon are also able to grow by moving from market to market under cutting local bricks and motar stores by not paying local taxes. They really compete only with other internationals who are also able to "offshore" they're taxes. (That's meant as an observation rather than a political comment).