Why can't local businesses compete?

Amazon
sinsingood

Go to company page Amazon

sinsingood
Jan 9 10 Comments

How can Amazon/Walmart afford to sell at such lower pricing than local shops?

Volume of business is the most bullshit argument I hear from most people.
I agree product acquisition price is lower because of high quantity purchase.
But that and maintaining a larger company comes with is own overheads and loses which can easily offset the reduced acquisition pricing.

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TOP 10 Comments
  • Pretty simple.
    1. Volume of business
    2. Amazon having deep enough pockets to forgo profits to capture market share until volume is large enough that their overheads are relatively lower
    3. Good supply chain strategies that help scale the company without taking much from the bottom line i.e even with large volume, overhead costs stay fixed or low
    Jan 10 0
  • Google
    blueet

    Go to company page Google

    blueet
    Volume of business
    Jan 9 0
  • Amazon / Eng
    N00bMonkey

    Go to company page Amazon Eng

    N00bMonkey
    LOL
    Jan 9 0
  • Amazon / Eng
    wawY45

    Go to company page Amazon Eng

    PRE
    Apple
    BIO
    I'm a no-man.
    wawY45
    I actually found it entraining to read up on how Walmart was starting up. Pretty amazing that it was a small business just a few decades ago.

    Today the big part of it is the brand. Every town has it. It's pretty decent all things considered. Many things are well priced.

    There's many Asian supermarkets that are doing just fine, so I'm not convinced that local businesses can't compete.
    Jan 9 0
  • Meta
    fomosapien

    Go to company page Meta

    fomosapien
    Local businesses can:

    1. Find one profitable business that’s not retail.
    2. Use profit to cover loss from low retail price
    Jan 9 0