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Well, obviously Amazon would have a storage burden, but my guess is they leverage unused or backup network processing resources to provide the service which are already part of their overhead, whereas a smaller player like Kobo might have to shell out significantly more to try and play in that league relative to what they take in... I think it's fair to say that for a huge company like Amazon it would be a tiny drop in the bucket.
I suppose one must consider that all the players are different and excel in differing areas. Kobo gives adjustable font weights, side loaded as well as company store purchased pubs and even some mobi support and a stellar front lit screen, while Amazon may be a bit more mature and built out and perhaps able to offer lowest ebook prices due to volume.
I suppose ultimately one must refrain from assuming and remember the old saw that "ya pays yer money, and ya takes yer chances" still applies. Research, research, research...
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