[fixxer]

If consumers were insensitive to that hike, yes. Problem is they aren't, which is why Amazon has to keep reinvesting and operating on that razor thin margin. That strategy is as bad for individual companies as it is for the macroeconomy (Asian tiger bubble comes to mind).

[DavidHm]

They don't have to increase prices. They just need to reduce CAPEX (stop reinvesting the money). Their operating margins are healthy.