lamentforicarus@lemmy.worldtoExplain Like I'm Five@lemmy.world•ELI5: How is Amazon able to sell me books so much cheaper than brick and mortar book stores in my areaEnglish
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1 year agoAmazon does not make any profit from their books. They are able to sell them cheaply because they sell them at a loss. They weren’t even profitable for a long time and maintained thanks to investors. Basically, Bezos sold the idea of the future of his store’s worth. And it worked.
Sure, but in that previous time period, they didn’t make a profit but were able to destroy the brick and mortar bookstore. So I guess it would be more honest to say they demolished the bookselling industry and now can argue for whatever deals they want because the only other bookstores are weakened.