Forum Discussion
jeffcarp
May 27, 2017Explorer
Carlos & Ranae wrote:
It is simply stated, greed. Another example, my wife wanted to purchase a folding ladder priced at $147. We found the same item on Amazon for $99. Bought and delivered within two days.
Greed is not an explanation. Amazon has pricing power that few if any retailers can match, if the item is actually sold by Amazon. They also have the ability to actually lose money on certain segments to put pressure on competitors that they're targeting. In addition, many things sold on Amazon are sold by marketplace retailers. They could literally be someone running a business out of their home.
When you say "greed" you're assuming that the margins are equal and CW is pocketing a higher profit. Highly unlikely. More likely is that CW is making a reasonable profit but has a higher cost basis.
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