• Nougat@kbin.social
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    1 year ago

    According to one J.P. Morgan analyst, the actual value of Prime is roughly $1,000 for a customer, which means that Amazon is subsidizing its Prime business to the tune of tens of billions of dollars a year.

    • lillardfair@lemmy.world
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      1 year ago

      the actual value of Prime is roughly $1000

      value is different than cost. At market shipping rates, Amazon could be charging their customers more, say $1000, for Prime. But that doesn’t mean it costs Amazon that much to operate it. So your statement means they are leaving money on the table, but they still very well may be making a profit off Prime. Just not as much as they could.

    • norbert@kbin.social
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      1 year ago

      And yet they’re still able to rake in cash, weird. Almost like some random JP Morgan analyst is telling half a story to slant it how they want.

      If Amazon was “losing” money on Prime they’d raise the price. It really is that simple, all the creative accounting in the world doesn’t change that.

      edit; you know how you can cost Amazon $1k per year? Cancel prime and stop buying so much bullshit.