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How does Amazon make money? They get a certain % from things sold?

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2 years ago#1
Since a lot of people have amazon prime and use free shipping...don't they have to pay companies like fed ex, ups, etc. for shipping?
2 years ago#2
And this is why you're an art student
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2 years ago#3
TimePharaoh posted...
And this is why you're an art student


I <3 You
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2 years ago#4
Through the generosity of Gabe Newell.
2 years ago#5
http://seekingalpha.com/article/1336931-amazon-loses-money-on-both-prime-and-its-entire-direct-retail-business
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EVGA
2 years ago#6
Super Saver free shipping costs them pennies per package, on average they lose about $11 on a prime membership (This was a few years ago, it might be more/less now) as far as shipping costs go. They buy things at wholesale and resell them at whatever price they can unless it's a marketplace item. If it's a marketplace item I'm sure they get a cut, no idea what that cut would be though.
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2 years ago#7
Hilariously Amazon basically does exactly what Walmart does, put competitors out of business using their economies of scale, yet everyone who decries Walmart as some kind of great Satan utters not a peep about Amazon's nearly identical, with the exception of being digital, business model, but still I love Amazon.
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EVGA
(edited 0 seconds ago)
2 years ago#8
DerPancake posted...
Hilariously Amazon basically does exactly what Walmart does, put competitors out of business using their economies of scale, yet everyone who decries Walmart as some kind of great Satan utters not a peep about Amazon's nearly identical, with the exception of being digital, business model, but still I love Amazon.


It's way easier to hate something you can drive by on a daily basis.
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Skillz Ferguson
2 years ago#9
DerPancake posted...
Hilariously Amazon basically does exactly what Walmart does, put competitors out of business using their economies of scale, yet everyone who decries Walmart as some kind of great Satan utters not a peep about Amazon's nearly identical, with the exception of being digital, business model, but still I love Amazon.


Amazon is not the same. Walmart competes with local brick-n-mortar businesses, hurting local economies in the process.
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2 years ago#10
Economies of scale.
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