No -- given equal profit margins, a small volume retailer will usually lose out to a large volume retailer, since the larger company can buy in bulk and sell at

No -- given equal profit margins, a small volume retailer will usually lose out to a large volume retailer, since the larger company can buy in bulk and sell at a lower price. Assuming that Amazon's volume is greater than Newegg's, if they operate with equal profit margins, Newegg will probably lose to Amazon. --- edit: though I see from your comment above that they have automated warehouses, etc. So maybe they can raise margins and still beat larger competitors on price. I buy from Newegg all the time; it will be interesting to watch over the next few years.