this post was submitted on 23 Jul 2023
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Explain Like I'm Five

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ELI5: How is Amazon able to sell me books so much cheaper than brick and mortar book stores in my area (lemmy.world)
submitted 1 year ago by DrMango@lemmy.world to c/explainlikeimfive@lemmy.world
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I like shopping in book stores. There's something about wandering the aisles and waiting for a book to jump out at you that I can't get shopping online. Unfortunately, whenever I compare the price of a book Amazon has every in-person store beat, often pricing their offerings 30%-50% lower (or around $10/book in my experience) even when I go to a large chain like Barnes and Noble.

How is it that Amazon is able to afford to offer the books so much cheaper and also support all of the infrastructure involved in shipping it to my doorstep compared with in-person stores?

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[–] lamentforicarus@lemmy.world 0 points 1 year ago (1 children)

Amazon 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.

[–] okiokbar@lemm.ee 1 points 1 year ago

That hasn’t been true for more than a decade. (Why be in a business you can’t make money on?) Amazon have, for a long time, invested more or less all their profits into new business lines on the promise that they could easily “flip a switch” and start making billions in profits. (They started doing that a few years ago after bad financial results.)