Yes, they are going to have to raise their margins at some point and there is no guarantee it can be done without costing them more business than they can affor

Yes, they are going to have to raise their margins at some point and there is no guarantee it can be done without costing them more business than they can afford. AWS is already pricey for what it offers. Raising the margin on Amazon.com's sales requires squeezing suppliers more and raising prices and I'm not sure that outcome will be profitable either.