Here's Why Amazon's Profitability Is So Low (Part 1 of 2)

In this note, we suggest that the low pricing strategy adopted by Amazon in both online retail, as well as Amazon web services segments, is one of the chief reasons for its lack of profitability. Additionally, Amazon owns a majority of the inventory that it sells on its websites, which adds to fulfillment and warehousing costs. High investments in data centers, fulfillment and sortation centers, technology upgrades, and hardware & content initiatives, have further put pressure on the company?s p...