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

#1BigB0ss13Posted 11/4/2013 5:17:12 PM
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?
#2TimePharaohPosted 11/4/2013 5:18:03 PM
And this is why you're an art student
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#3DiehardFFv2Posted 11/4/2013 5:19:29 PM
TimePharaoh posted...
And this is why you're an art student


I <3 You
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#4somebody336Posted 11/4/2013 5:19:47 PM
Through the generosity of Gabe Newell.
#5DerPancakePosted 11/4/2013 5:21:54 PM
http://seekingalpha.com/article/1336931-amazon-loses-money-on-both-prime-and-its-entire-direct-retail-business
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#6PhilOnDezPosted 11/4/2013 5:23:09 PM
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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#7DerPancakePosted 11/4/2013 5:25:10 PM(edited)
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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#8KabtheMentatPosted 11/4/2013 5:53:14 PM
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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#9TheDrizzuhPosted 11/4/2013 6:00:19 PM
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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#10megaman4everEXEPosted 11/4/2013 6:05:11 PM
Economies of scale.
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