[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)