This article discusses how Amazon.com struggles to make a profit, despite its growing number of successful business ventures. The company has a competitive line of tablets, an online education company, and recently introduced a PayPal-like payment mechanism, to name a few.
“’Bezos has chosen to run Amazon to be the biggest, most powerful and successful retailer on Earth 20 years from now. Any fool could run it profitably today.’
Others argue that once a discounter, always a discounter. Amazon is branching out into many forms of commerce and technology, but at its core it sells commodity goods cheaply. A book from Amazon is the same book that it would be from any other retailer, and so is a package of diapers. Amazon also ships cheaply and has renowned customer service.
To make a significant profit, though, some or all of those variables will have to change, which might alienate customers and slow down that roaring revenue growth. That, in turn, would cause investors to demand profits even sooner.”