Comment on Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit
AutistoMephisto@lemmy.world 3 days agoExactly. A systemic issue with capitalistic markets is that they inherently select for short term thinking.
Does it make sense to destroy 90% of your profitability 5 years from now for a 20% bump in profit this quarter? Well, yes, it does, because that’s 20% more profit to expand and take over the market.
Even if a business were to try to make good long term decisions, it would immediately be crushed and pushed out of the market by all of its competitors willing to make those shortsighted decisions for immediate profits.
Except in the case of Amazon, thanks to AWS they were able to make good long-term decisions with their e-commerce platform by making short term decisions with AWS.
dan@upvote.au 3 days ago
AWS didn’t exist until after Amazon became profitable. They were already making good long-term decisions before AWS.
AutistoMephisto@lemmy.world 3 days ago
Right, back when they were just a bookstore. All I really know about Amazon is that they focused on long-term profitability over increased short-term profits to expand and capture more of the market, and it worked. The problem is that not everyone can do that. They spent every year since 1994 operating at a loss, when anyone else would have been snapped up by another company in the space, and it’s not clear how that didn’t happen. The landscape of e-commerce would have been very different if it had.