Quote:
Originally Posted by emellaich
Bottom line, is that it appears that Amazon breaks-even or loses money on most of the stuff they sell. It's almost like they treat low priced stuff as marketing cost to get people to their web site. Once they have the eyeballs there, they make money by steering them to advertisers, affiliated stores, and other similar arrangements.
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Amazon isn't losing money on everything they sell. But Amazon does have low margins on everything they sell...and they appear to have invested a lot of money in products like the new kindles and the kindle fire. Presumably this money will return additional profits in the next year or so.