Because they were using all profit to build out EC2, fulfilment centers and fullfilment tech. It wasn't that there wasn't profit because the margins were low, there wasn't profit because they were pouring it all into different verticals and building moats.
So yeah they weren't profitable but they weren't just scraping by either. I think that's one of those things that people miss when they compare a not-so-profitable startup to Amazon. The size, scale, and huge number of product markets that Amazon plays in is really pretty astounding for a company that is only 25 years old.
So yeah they weren't profitable but they weren't just scraping by either. I think that's one of those things that people miss when they compare a not-so-profitable startup to Amazon. The size, scale, and huge number of product markets that Amazon plays in is really pretty astounding for a company that is only 25 years old.