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Comment by zbobet2012

I agree with your points, but I've also found another one that is far more common:

They sell products at a loss to gain income in other places. For example, if you are a content producer you are competing with a company that sells "ad-free" video (Prime Video) attached to a low-cost service (Prime) so that they can sell more goods online.

Amazon is killing content producers by running a negative margin content business to do sell-through on e-commerce.

Amazon is killing video encoding business by selling a negative margin video encoder to sell through AWS compute.

This is extremely common in every "field" Amazon is in. They run at negative margins in one huge sector of business because it drives massive income in another.

That is a strategy only available to... monopolies. You can't afford to compete with them, because they are not _even trying_ to make a profit in your sector.

parent zbobet2012 6 years ago

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