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