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

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

User Info: BigB0ss13

BigB0ss13
4 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?

User Info: TimePharaoh

TimePharaoh
4 years ago#2
And this is why you're an art student
HE are genius, firstly. - ASlaveObeys
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User Info: DiehardFFv2

DiehardFFv2
4 years ago#3
TimePharaoh posted...
And this is why you're an art student


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User Info: somebody336

somebody336
4 years ago#4
Through the generosity of Gabe Newell.

User Info: DerPancake

DerPancake
4 years ago#5
http://seekingalpha.com/article/1336931-amazon-loses-money-on-both-prime-and-its-entire-direct-retail-business
EVGA

User Info: PhilOnDez

PhilOnDez
4 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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User Info: DerPancake

DerPancake
4 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.
EVGA

User Info: KabtheMentat

KabtheMentat
4 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.
Big Money. Big Women. Big Fun.
Skillz Ferguson

User Info: TheDrizzuh

TheDrizzuh
4 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.
"I won! %@#$ you! You are dumb. I have crushed you."
--Wooz

User Info: megaman4everEXE

megaman4everEXE
4 years ago#10
Economies of scale.
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