Hacker News new | ask | show | jobs
by hnxs 1684 days ago
Can you explain how Costco is relevant here when they make most of their money off membership fees and not sales?
1 comments

Would you say the same about Amazon promoting its own brand, if Amazon made more money off Prime than sales?
I'd say in the case of Amazon, store brands are missing the point. They can let sellers take all the risk of determining what the market will support, while profiting whether the seller is successful or not. If successful, Amazon can reach its own deal with the manufacturer and compete with the very same branded product, possibly at a lower price, without having to pay into the marketplace, and with the capability of manipulating the search results.