Amazon first party sales are a loss-leader for highly profitable 3rd party sales.
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Amazon literally loses money on many of the branded products they sell. They make it all back and more through their marketplace. Amazon perpetuates the myth that they make no money to avoid regulatory and government oversight.
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I'm pretty sure that knowingly pricing products below cost (even if you make money on it via a separate pathway) is a violation of the Sherman Anti-Trust Act. Price manipulation below cost to intentionaly harm a competitor is illegal. But its AMZN so its all good.
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I don't think they're doing that. They do it algorithmically too so it's a weird situation that the courts have not spoken on.
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So why risk the bad publicity by pushing so hard to bring more and more products in house and competing aggressively with the vendors on their platform. They could accomplish the goal of showing limited accounting profits without the expansive portfolio of branded products.
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Agree with you on this. They should only be private labelling grocery store stuff. Anything else is a bad idea for them.
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Most of their operating income comes from AWS / Advertising. Ecom market share > Ad Sales.
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I don't think anyone outside of amazon knows the numbers well enough to say. Referral fees are huge for their income. Literally 10-15% of every sale is a lot of free money.
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