How does amazon afford the cost of those cardboard boxes when the item is inexpensive that the box costs more then the product?
How do they pay for that free shipping and return shipping when I cannot ship a small box to anywhere without a high cost?
Somehow they gotta be subsidized by us.
I have guessed that they get a huge discount on shipping by the various companies. Particularly FedEx since they seem to use them the most. As well as their own and USPS. Well, they do charge us for prime. I’m sure they’ve done lots of calculations to see just how much we use in shipping cost versus the cost of prime.
Not to mention that right now, their generous return policies and free shipping on small items. Probably get people to buy a whole lot more than they normally would. I know I do.
I don’t think they’re hurting, they’re probably still making tons of money! I imagine that once they become more of a monopoly, the price of prime will grow up and the restrictions on shipping will start. Just like now, the return window has closed to 30 days. So I think the restrictions are starting.