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Amazon is a killing machine, and you're clueless if you don't realize this

http://www.eugenewei.com/blog/2013/10/25/amazon-and-the-profitless-business-model-narrative
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Moez Sallami's profile photoAngus Marshall's profile photoJohn Nash's profile photoJulie Holberg's profile photo
35 comments
 
Amazon is the best shop that have ever opened. Cheaper. Faster. And its future. 
 
&they also are an opportunity machine against all the other "killing machines"
 
Hard to find the message centre when you want it;-)
 
The Amazon strategy will be studied in business schools forever. 
 
True but you don't buy every business in sight if they aint making money and lots of it there's a smile on lots of boxes 
 
Thanks for the post... As an investor in Amazon stock... it has been a tremendous long term play... Love the stock and enjoy observing their strategy and Tactics.... 
 

I believe they are on top due to their customer service. 
 
Their customer service is definitely tops and thats given them the edge with consumers. But, having been an amazon seller, I can tell you their service does come at the significant expense of any and all competition :-(
 
Amazon is one of the few large companies that still runs like a startup, constantly investing today's cash for future growth with an agressive risk profile. I think it's fantastic and I am really interested to see what comes next in online retail from Amazon's continued investment. Innovation doesn't come cheap.
 
How does Guy Kawasaki KZ400 know me as well as he does?  He nailed it.  I'm a nit-wit.  We never met - I am so clueless as to just how smart this guy (no pun intended) really is.  Doh!
 
I think that the prices have to be monitored to keep the competion fair 
 
Interesting. Thank you. And as long as we continue to buy from them (which I will as well) they will continue to grow. As a self-publisher, it's hard to beat CreateSpace, ACX, KDP and Audible...unfortunately. 
 
If I'm understanding the article correctly (didn't really read the whole thing...ADD and all) Amazon re-invests their profits in growing the company. I'd do the same thing. I don't really shop there much though, I can usually find what I'm looking for on EBAY.
 
Thank God for Amazon, 'cause otherwise it'd be all Apple everywhere!
 
I love them, but didn't they just post a widening quarterly profit loss? I wonder if their strategy for taking a loss on hardware is sustainable. 
 
Jaxon Lee - the Kindle is the Gillette razor selling blades to make a profit. 
 
Living in the boonies and having to drive many miles to a box store saves wear & tear + the gas money. Home delivery is a luxury. 
 
They have started 2 day delivery option in other countries too. And if for some reason they can't deliver in time they will give you shipping money back. I think they are working on a large amazon prime may be global prime or something in near future. 
 
+Rudy Jakubin I totally get the strategy. It just doesn't seem to be paying off in terms of profits. 
 
Yes, totally they are dominating the online shopping market.
 
You are right! I didn't get it a few years ago, but that 'one click' patent and pushing their content out to the ON button on Kindle tablets is so incredibly powerful. Everyone else is just waiting and hoping for someone to come to their website, come to their store, or sending out emails that get lost in a sea of other emails to someone's in-box, and Amazon is totally handing people a cash machine that comes on at the computer ON button with Amazon content!  Total customer capture! 
 
Will there be a time when we don't see brick and mortar stores like Wal Mart and Target??? These chains are definitely hurting with Amazon's ability to keep things cheap and offer everything on the planet. 
 
They're not indomitable. Watch out for WalMart who's building the inverse of Amazon, from the brick and mortar to the Internet. 
 
The truth is given their margins, they are not ever going to turn a large profit like Apple or Microsoft. Amazon is simply way overvalued regardless of their supposed ability to flip the switch. How many companies get a pass on being able to reinvest all profits and then some in order to gain market and for how long? Everyone gets that their business model is market growth, the moment that falters (if not before) they better be able to show that they can also grow profit.
 
I love Amazon.  They make my life a lot easier, and save me time for more important things than shopping.
 
I've never understood why we treat mom and pop stores that simply serve as inefficient middlemen as some kind of sacred institution.

Of course Amazon is a middleman too. They just happen to be a less inefficient one.
 
How they can make literally no profit on such stupendous revenues beggars belief. There must be ways to drive a profit. Otherwise I think the strategy must indeed be a killing machine, taking share until it has less competition and can drive profit. 
 
It's simply about delivery and software delivery networks and management... And innovation... So all those people so short-sighted with the small profit margin critique... You are missing the signs of what the future is going to be with AR, delivery & media's relation to retail.
 
& when I say 'delivery' alone... It means real world retail delivery. 
 
At least here in Germany it is their customer service that pushed Amazon so  much. Every time I try to order somewhere else it doesn't take long until I remember why I wanted to stay with Amazon

The common problems with others: 
- their shipping takes long
- their shipping status is sometimes wrong
- you wait a few days until you get an answer from the support or have to call an expensive number. Chat support or something similar? It doesn't seem to exist in their mind
- if something is damaged or wrong you've to deal with them for weeks until you get a new product or your money back

In every of this aspects Amazon does a pretty good job. Most people I know who order almost everything at Amazon are doing it because of the great service. 
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