Amazon often has higher prices than Walmart & Target, but people still don't shop Walmart online because Amazon is convenient. Amazon knows the perfect price point to stop people from shopping around to other online outlets, that doesn't mean it is giving the lowest price to consumers.
People will, in person, buy something from Walmart instead of Kroger over $2, but Amazon has somehow figured out how to keep people on their site by properly measuring demand elasticity.
Not to mention most listings on Amazon now are ads for products on Amazon. Tide, etc pay for top placements in the stores. So Amazon gets fulfillment cut and money from ad revenue. It's pretty impressive.
People will, in person, buy something from Walmart instead of Kroger over $2, but Amazon has somehow figured out how to keep people on their site by properly measuring demand elasticity.
Not to mention most listings on Amazon now are ads for products on Amazon. Tide, etc pay for top placements in the stores. So Amazon gets fulfillment cut and money from ad revenue. It's pretty impressive.