Amazon makes razor thin margins. As time passes, they will get more competitors on all fronts of e-commerce, some of which (maybe Wal-Mart, Target) will be desperate to maintain their stature. How does Amazon ever build a position to raise prices without significantly losing the market?
By collecting employee tears and selling them at a premium.
amazon is more interested in free cash flow from retail than profits.. and invest in more profitable businesses like aws , digital products, Alexa where profits can be higher..
This ^
Does that mean you agree, Paypal?
the way to look at Amazon is X + y1..yn.. where y1.. n generates profits .. X lends money to create yn+1.. X is retail.. which grows in the amount it can lend but may not be profits..
And prices will be further lowered as costs are cut further
Which is also why retail + aws have to exist under 1 roof
yes
Amazon is just trying to drive everyone else out of business, then they will raise prices.
that is not how they think..
Amazon is already more expensive for a lot of items, though
They already raised prices, most items are available at lower prices at other places than Amazon. Unless you have prime, that actually makes Amazon more expensive, since non prime users subsidize the prime members.
Amazon can take the loss in retail because AWS is such a cash cow. This is why other retail businesses should fear Amazon. All the tech companies use this tactic but Amazon is unique in that it competes against non tech companies. Google has been funding moonshots with growing ad profit. Microsoft lost billions in Bing and Xbox but it did not make a dent on accounting and still very profitable. This should be a scary story. Extremely profitable tech coming to get the companies doing the business with thin margin - dooms day for non tech companies. If you doubt AWS is that big, look at the earnings. It used to be nothing until three years ago. Now it is 16B annually with margin being around 25%. Amazon had been doing well even without AWS. Now that it has 4B free money and it will be 6B next year at his growth.
Innovation. Efficiencies. Rocketships
Cool story
So they will use more buzzwords?