Thread: Analyst: Amazon Is Losing Its Shirt
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Old 12-10-2009, 05:14 PM   #33
calvin-c
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Quote:
Originally Posted by Nate the great View Post
"Losing its shirt"? Horsepucky.

Am I the only one that remembers that "We'll make it up on volume" was Amazon's business strategy during the early years when it wasn't turning a profit? It worked then; why shouldn't it work now?
If they're losing money on each sale then they can't 'make it up on volume'. The more they sell, the more they lose. The 'make it up on volume' only works when the price of acquisition drops with increasing volume. That might be the case with ebooks, but not according to the article-it says they're losing money on every sale. And there's no way to make it up on volume if that's true.
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