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A comment on AWS Drives More Than Half of Amazon's Operating Income. Parent comment
That means it cost it 63% to buy products(on credit like terms), and 33.3% to fullfil orders.
So from a risk terms we can say their margin is equivalent to 3.7/33.3 = about 10%. Which isn't bad.
Furthermore, a lot of those costs are variable costs, like shipping, which go down if demand drops.
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That means it cost it 63% to buy products(on credit like terms), and 33.3% to fullfil orders.
So from a risk terms we can say their margin is equivalent to 3.7/33.3 = about 10%. Which isn't bad.
Furthermore, a lot of those costs are variable costs, like shipping, which go down if demand drops.