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Businesses

Submission + - Is Amazon eating itself? (pcpro.co.uk)

Barence writes: "PC Pro investigates whether Amazon's aggressive price cutting and expansion is a recipe for business suicide. Amazon makes such thin margins on its huge inventory that there’s little wonder the business isn’t making money in many of its activities, according to financial experts. PC Pro's analysis of the bestselling Kindle ebooks on sale from Amazon, for example, shows that 14 of the top 20 were selling for less than £1, with seven of those on sale for less than 20p. "It’s hard to conclude that in any of its non-cloud businesses it makes anything resembling an economic profit," says Lawrence Haverty, a portfolio manager with publishing and media investment company Gabelli Multimedia Trust. "The market doesn’t hold [CEO] Jeff Bezos accountable to earn a competitive return – it gives Amazon a free pass to get into these markets with a very low margin structure and then do something else.""
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Is Amazon eating itself?

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