It doesn't really matter what Bezos says - if they keep growing their business, some day they will find themselves in the same position as Apple, Google and Microsoft: they generate so much revenue that they don't know how to invest it intelligently.
It'll take Amazon longer because their margins are lower and their expenses (warehouses, planes etc.) higher than very generous programmer salaries but there will be a time where it won't make sense for them to build another warehouse in, say, California.
My comment was also in context: some people apparently believe that AWS is the only business that matters in context of Amazon and ignore massive revenue and continuous growth of the ecommerce business. I believe that ecommerce business will ultimately be more profitable (as total profits, not profit margins) to Amazon than AWS. And yes, it might take a couple of decades.
Not to mention half of all households in the US have a Prime membership at roughly $99/yr. Allows them to leverage in to video, music, etc with a different value/cost model than Netflix for example.
< half of all households in the US have a Prime membership at roughly $99/yr.
Back of the envelope - of 300 deliveries ~45 are prime (15%) and 2 are Amazon Fresh (0.7%)
The prime patrons are addicts of prime and online in general.
But still the most in one day I have ever seen is 25 parcels for one person. One is the norm. Two once in a while.
Imo cell carriers taught people "free" (free long distance) and Amazon was smart to use that already popular notion of "free" free shipping - you just have to pay once annually.
You can be certain that someday Bezos will no longer be in charge of Amazon, and if it is not already Day 2, then in short order it will be and Amazon will turn a profit.
It doesn't really matter what Bezos says - if they keep growing their business, some day they will find themselves in the same position as Apple, Google and Microsoft: they generate so much revenue that they don't know how to invest it intelligently.
It'll take Amazon longer because their margins are lower and their expenses (warehouses, planes etc.) higher than very generous programmer salaries but there will be a time where it won't make sense for them to build another warehouse in, say, California.
My comment was also in context: some people apparently believe that AWS is the only business that matters in context of Amazon and ignore massive revenue and continuous growth of the ecommerce business. I believe that ecommerce business will ultimately be more profitable (as total profits, not profit margins) to Amazon than AWS. And yes, it might take a couple of decades.