I'm sure they are, so they a pass those lovely negative externalities onto the customer because they know it's in demand and only they provide that service.
If only they had a competitor that could launch the same products a few months later but offered higher reliability off the bat, that could eventually force Amazon to improve their reliability or risk losing customers long term.
Being first to market doesn't ensure eventual market dominance. Sure, it could give you important feedback. But if your product is subpar, the feedback will have a ton of noise and possibly be useless. Plus it's not worth creating negative externalities and earning the reputation.
If only they had a competitor that could launch the same products a few months later but offered higher reliability off the bat, that could eventually force Amazon to improve their reliability or risk losing customers long term.
Being first to market doesn't ensure eventual market dominance. Sure, it could give you important feedback. But if your product is subpar, the feedback will have a ton of noise and possibly be useless. Plus it's not worth creating negative externalities and earning the reputation.