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Amazon works on the "Long Tail" model. They sell a boatload of a few products, New York Times bestsellers as an example, at significant discounts, but they make it up on the hundreds of thousands of products that they only sell a few of, but they sell each one at full price. They make their money on those long tail products, not the mainstream discounted products. If all you sell is mainstream products at a discount, then you are in trouble, like Best Buy, or as I heard them referred to recently "Amazon's showroom"
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