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Do you think Amazon's lack of profit is purely because they are reinvesting everything or do you think they may be using that as a slight crutch? I'm just wondering if when growth slows down, will they need to make changes to actually get a good profit margin. I'm thinking raise % taken off the top of their sellers, raise prices, etc. Essentially charge more for their platform and a little more for the products they actually sell.
Do you think Amazon's lack of profit is purely because they are reinvesting everything or do you think they may be using that as a slight crutch? I'm just wondering if when growth slows down, will they need to make changes to actually get a good profit margin. I'm thinking raise % taken off the top of their sellers, raise prices, etc. Essentially charge more for their platform and a little more for the products they actually sell.
What is your opinion on that?
I think it's a mixture of both. They announced that they will need to raise the Amazon Prime membership by $40 per year eventually. They are also investing in original programming and putting money back into the business. That's why it's such a complicated stock because it is a power house that isn't making money, but you could debate if they wanted to turn a profit they could right now.
I think sentiment is growing against Amazon. They always used to have extremely fast shipping, no sales tax, and competent customer service.
Shipping is not always in two days anymore (I am a prime member), they now have minimum orders to qualify for free 2 day shipping, they now charge sales tax, and customer service has taken a nose dive. Had an issue recently and Amazon did not make good on it. Had to deal with foreign sounding customer service reps.
Its just not a deal anymore and its easier to just go buy whatever I need from the store. If they raise the price of prime, its one more strike against them.
I think sentiment is growing against Amazon. They always used to have extremely fast shipping, no sales tax, and competent customer service.
Shipping is not always in two days anymore (I am a prime member), they now have minimum orders to qualify for free 2 day shipping, they now charge sales tax, and customer service has taken a nose dive. Had an issue recently and Amazon did not make good on it. Had to deal with foreign sounding customer service reps.
Its just not a deal anymore and its easier to just go buy whatever I need from the store. If they raise the price of prime, its one more strike against them.
My experience is actually the opposite.
I feel like before there weren't many Amazon Prime eligible items and now basically 99% of the items I want are eligible for 2-day shipping, even a 10 foot rug I recently bought.
I would say 49% of my items arrive in 1-day and 49% arrive in 2-days and 2% are late (which I just tell them, hey, the item was a day late, so I don't want it anymore and they say no problem).
I imagine this varies depending where you live in the US. I currently live in San Francisco, California, so maybe this is why I receive a lot of my items overnight.
California charges sales tax on online purchases, so the fact that Amazon now charges sales tax is normal to me.
Once again, this is just my experience, but I am finding myself buying virtually everything from Amazon Prime now... from windex, 409,, shampoo, soap, dog food, fish supplies, movies, games, bottled water, paper towels, toilet paper, laundry detergent, vitamins and much more. I even got their Amazon Visa card because I was buying so much through their website nowadays and it gives me 3% cash back.
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I own a lot of it
