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by legitster 2196 days ago
"Constantly reinvesting for even bigger economies of scale."

This may have made sense 5 years ago, but this doesn't make sense when their margins have only gotten lower and their number one expense is employees, which is a marginal cost. They are well into the "diseconomies of scale" territory. And there are more competitors now then when they started!

> You don't seem to actually understand Amazon's business model at all

Source: I have worked in and out of the Amazon ecosystem for 5 years.

2 comments

> Source: I have worked in and out of the Amazon ecosystem for 5 years.

In and out of Amazon or Amazon's eco-system. You should qualify this as they are very different perspectives.

Perhaps Amazon is trying to be the major fulfillment provider as automation of order picking becomes more productive, and those employees are made redundant; a sort of "Netflix for warehouses" model (where Netflix went from mail fulfillment to online).