[HN Gopher] Amazon Says Labor, Fulfillment Costs May Wipe Out Ho...
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Amazon Says Labor, Fulfillment Costs May Wipe Out Holiday Profit
Author : samizdis
Score : 7 points
Date : 2021-10-30 20:07 UTC (2 hours ago)
(HTM) web link (www.supplychainbrain.com)
(TXT) w3m dump (www.supplychainbrain.com)
| 1270018080 wrote:
| Of all of the monopolies and oversized tech companies out there,
| Amazon/AWS should be the first one to split. It's feels bullshit
| that Amazon retail can undercut the entire industry because AWS
| is essentially subsidizing it.
|
| Last time I checked, Amazon retail breaks even and AWS has ~20%
| margins.
| version_five wrote:
| So say it was separated, and the first order effect is that AWS
| inc is wildly profitable, and Amazon retail is not, and they
| have to raise prices or lose market share to others. Is that
| going to result in a better outcome?
|
| I don't think I've formed an opinion on whether breaking them
| up is better. On one hand, amazon driving competitors out of
| business seems bad, on the other, you could think of it as
| subsidizing innovation in retail with profits that otherwise
| would just go to the shareholders. I don't entirely buy that
| either, but neither do I buy the idea that we should break them
| up so those maintaining the status quo can be competitive
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(page generated 2021-10-30 23:01 UTC)