Comment on Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit
NotMyOldRedditName@lemmy.world 4 days agoRevenue is not profit.
Comment on Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit
NotMyOldRedditName@lemmy.world 4 days agoRevenue is not profit.
Takumidesh@lemmy.world 4 days ago
Yes, but revenue pays for things like salaries, advertising, etc.
NotMyOldRedditName@lemmy.world 4 days ago
It helps with cash flow sure, but if it’s not profit you’re going into debt to pay that.
Takumidesh@lemmy.world 4 days 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 4 days 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 3 days 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 3 days ago
What do you think profit is? It seems like you’re conflicting profit with income.
NotMyOldRedditName@lemmy.world 3 days 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