The Secret To Amazon's Success (Or Lack Thereof)

[LOYD]

Sales Are Colossal, Share Are Soaring. All Amazon Is Missing Is A Profit.

I found this article pretty interesting. Seems like Amazon operates on a slim margin, high volume approach. The article examines whether or not this approach will continue to work for them in the long term.

 

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[Breaking Free]

It's the price they pay to try and carve their own market. I remember when they first started, and they didn't turn a profit for several years. Yet their stock went up and up. But hey, it seems to be working for them.

 

[tafy]

The article examines whether or not this approach will continue to work for them in the long term.

Amazon is the king of Internet retailing, they can turn on the profit tap anytime they like. But at the moment it seems they re-invest and diversifying into kindles/phones. Gotta say their new tablet line looks amazing and they are very aggressive, taking on Apple on the tablet and future smartphone will be hard.

Side note: The town I live in here is getting killed by ebay/amazon, money is getting tighter and more people are going online for their shopping. No signs of this slowing down either.

 

[MooreMillions]

I thoroughly enjoyed that article.

I don't know what Jeff has up his sleeve, but since the early 2000's, I always felt he got lost in the shuffle amongst the internet geniuses/elite because he sold goods and not tech services.

This guy truly built his business from the bottom up. He literally thought of every Unique Selling Position for his company before he even got started.

Just brilliant, in my opinion.

 

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[RHL]

Amazon is the Google of online retail. Anyone who thinks that they're having problems is kidding themselves. I have to believe that everything about their profit margins and services are by design.

 

[DennisD]

Amazon's profits lie within kindle sales.
Lost to 0 distribution costs, mean 100% profit on products they don't have to produce, market, or check for quality.

 

[RHL]

Kindle+self publishing system. They're selling shovels. By the millions.

 

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[Guest3722A]

How many things did they buy this year? I know Jeff Bezos bought the Washington Post, but that was on his dime.

 

[MattCour]

Bezos is brilliant with some of his ideas. I'm pretty sure Amazon is doing just fine for themselves They own the Ecommerce space!

 

[Heraclides]

Amazon is expending also, they will be in Poland soon as a distrubution department if I'm not wrong.

 

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[Kak]

They have created their own economy in which they are the tax man. I have spent a small fortune on fees from amazon. That is the best business model ever.

I guarantee that they make more money on a $100 item of mine than something they have cut every other retailers throat on to get to $100 and sell it themselves.