I received an Amazon giftcard the other day. As I perused the site and compared prices with other e-tailers such as Target, Best Buy and Wal-Mart, I found that, as always, Amazon undercuts its competition, especially with tax and shipping factored in. Since I spend much of my pocket change at Amazon, this discovery came as no surprise.
But what was surprising was an interesting metric; Amazon, nearly earth’s largest
bookseller, books a net profit of only 1.34%. Granted, they rely on volume, not margin, for profits, but this incredibly low number was compelling, and seems indicative of Amazon’s corporate philosophy of using loss leaders – like the Kindle Fire – and microscopic margins to catch and keep customers within its simple and increasingly expanding product and entertainment ecosystem. The thinking is, as long as one buys a book at Amazon – giving them, say 28 cents on every $25 hardcover sold – one may as well purchase digital content from Amazon’s burgeoning music, video, and e-book selections. And while you’re at it, why not everything else?
Ben is a far more accomplished blog reader than I am. However, I’d like to mention a few URLs that I occasionally hit up. 1. Harvard Business Review Blog has many interesting ideas, some mentioned in the magazine, some not. 2. The Economist website, if only for the fact that there are occasionally bylines featured. … Continue reading Dave’s Favorite Blogs
Marginal Revolution is easily my favorite blog. I’ve been a subscriber on Google Reader (by the way, use it, it rocks) for around 2-3 years and Tyler Cowen and Alex Tabarrok (both professors of economics at GMU) have not let me down once. It is my first and last stop when I am looking for book ideas, … Continue reading Ben’s Favorite Blogs
As we all may have heard, the New York Times published a survey, detailing Americans’ declining faith in the Supreme Court. The story was also picked up by the Wall Street Journal, Boston Globe, and a number of other papers. And yet, the Huffington Post, as is its nature, insists on publishing obscenely large pictures … Continue reading The Huffington Post Needs to Stop Featuring Sensationally Large Headlines