Comment on Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit
NotMyOldRedditName@lemmy.world 10 months agoRevenue is not profit.
Comment on Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit
NotMyOldRedditName@lemmy.world 10 months agoRevenue is not profit.
Takumidesh@lemmy.world 10 months ago
Yes, but revenue pays for things like salaries, advertising, etc.
NotMyOldRedditName@lemmy.world 10 months ago
It helps with cash flow sure, but if it’s not profit you’re going into debt to pay that.
Takumidesh@lemmy.world 10 months ago
I mean, non profits exist. Of course it’s not the case for Amazon, but you don’t need to profit in order to exist as a company, and people still get to make money.
NotMyOldRedditName@lemmy.world 10 months ago
Non profit doesn’t mean no profit.
Non profits make enough profit to pay their employees, or they get money from other sources. They still make money.
For a company to succeed, there must be profit, or have an outside source of funding.
You cannot pay rent with revenue and no profit.
tpihkal@lemmy.dbzer0.com 10 months ago
All companies have to earn a profit, not just to pay for the expense of the goods plus all of the overhead, but also to be able to reinvest and grow. There’s a difference between earning a livable wage while the company as a whole remains poor and earning barely enough to live on while the investors pull in massive gains year over year.
ricecake@sh.itjust.works 10 months ago
What do you think profit is? It seems like you’re conflicting profit with income.
NotMyOldRedditName@lemmy.world 10 months ago
Profit is revenue - cost of goods.
If you make a widget and it costs you $100 to make, and you sell it for $110, you have $10 profit. Then you have all the other expenses that it takes to run a business, lets say that’s $200.
Your revenue is $110
You profit is $10
Expenses: $200
You NET profit (AKA Net Income) is $-90