Amazon makes only 1% in profit..how does it survive?
How does a company like Amazon survive?
In 2014 Amazon pulled $349 million in net profit on nearly $75 billion in revenue, less than 1% in profit on gross revenue. Most of their capital is being spent on expansion and Prime shipping.
How do they do it?
Matt Iglesias, Slate writer says:
“(Amazon is) a charitable organization being run by elements of the investment community for the benefit of consumers.”