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This is a misconception. Amazon aren't making any profits because they are pumping all of their margins into new facilities and other infrastructure investments
by rednukleus 14y ago
This is a misconception. Amazon aren't making any profits because they are pumping all of their margins into new facilities and other infrastructure investments. If they stopped expanding and just squeezed profit out of their existing business, then they would be very profitable.
After Walmart destroyed the mom and pop store they didn't incrase prices, and Amazon probably won't either. Particularly since Amazon are an online retailer, and it is very easy for customers to shop around.
- OGinparadise 14y agoAmazon aren't making any profits because they are pumping all of their margins into new facilities and other infrastructure investments. If they stopped expanding and just squeezed profit out of their existing business, then they would be very profitable. Not sure if they can ever stop, maybe slow down but they will still need to buy companies. And, Amazon needs to make $5+ Billion in profit with this valuation, something missing After Walmart destroyed the mom and pop store they didn't incrase prices Well they "forced" companies to lower the prices Walmart paid http://www.fastcompany.com/47593/wal-mart-you-dont-know http://www.fastcompany.com/47593/wal-mart-you-dont-know so the net is more or less the same.