Current Events > Amazon's profit margin in 2017 was only about 1.7%

(+) Yeah! (+)

https://www.marketwatch.com/investing/stock/amzn/financials

2017 Sales/Revenue177.87B

2017 Net Income 3.03B

Profit Margin = 1.7%

So people need to stop pretending like they are this evil monopoly that is hoarding all kinds of profits for itself. Also as recently as 2014 they actually lost money that year.
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Sativa_Rose posted...

https://www.marketwatch.com/investing/stock/amzn/financials

2017 Sales/Revenue177.87B

2017 Net Income 3.03B

Profit Margin = 1.7%

So people need to stop pretending like they are this evil monopoly that is hoarding all kinds of profits for itself. Also as recently as 2014 they actually lost money that year.

Please list market share instead of this bullshit.

oh noes, they ONLY made 3 friggin' billions profit! They need government help to stay alive!
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4% of retail sales, 44% of e-sales
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Teddytalks posted...

Please list market share instead of this bullshit.

Define "Market Share"
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Sativa_Rose posted...

https://www.marketwatch.com/investing/stock/amzn/financials

2017 Sales/Revenue177.87B

2017 Net Income 3.03B

Profit Margin = 1.7%

So people need to stop pretending like they are this evil monopoly that is hoarding all kinds of profits for itself. Also as recently as 2014 they actually lost money that year.

lol I'm ignoring any political statements if they're good or bad...Amazon barely ever makes a profit because they continue to reinvest their revenue into new services and new business strategies...so you're making a terrible point

Tyranthraxus posted...

Teddytalks posted...

Please list market share instead of this bullshit.

Define "Market Share"

notsureif
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Teddytalks posted...

Please list market share instead of this bullshit.

https://www.recode.net/2017/10/24/16534100/amazon-market-share-ebay-walmart-apple-ecommerce-sales-2017

43.5% of all e-commerce sales

But hey, if they offer the best prices, why does it matter?
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CruelBuffalo posted...

Sativa_Rose posted...

https://www.marketwatch.com/investing/stock/amzn/financials

2017 Sales/Revenue177.87B

2017 Net Income 3.03B

Profit Margin = 1.7%

So people need to stop pretending like they are this evil monopoly that is hoarding all kinds of profits for itself. Also as recently as 2014 they actually lost money that year.

lol I'm ignoring any political statements if they're good or bad...Amazon barely ever makes a profit because they continue to reinvest their revenue into new services and new business strategies...so you're making a terrible point

Exactly, they are creating new jobs and reinvesting into the economy.
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I don't think people shit on them for "hoarding profit".

It's because they didn't pay taxes.
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theAteam posted...

I don't think people shit on them for "hoarding profit".

It's because they didn't pay taxes.

I don't like that fact, but all corporations try to exploit the tax code. It's a problem with the tax code and our political system.
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Amazon will replace best buy, target, and every single retail store in the future.

Sativa_Rose posted...

CruelBuffalo posted...

Sativa_Rose posted...

https://www.marketwatch.com/investing/stock/amzn/financials

2017 Sales/Revenue177.87B

2017 Net Income 3.03B

Profit Margin = 1.7%

So people need to stop pretending like they are this evil monopoly that is hoarding all kinds of profits for itself. Also as recently as 2014 they actually lost money that year.

lol I'm ignoring any political statements if they're good or bad...Amazon barely ever makes a profit because they continue to reinvest their revenue into new services and new business strategies...so you're making a terrible point

Exactly, they are creating new jobs and reinvesting into the economy.

Like i said, i'm ignoring any part saying they are good or bad. I'm saying it's stupid to pretend Amazon is struggling

FFVII_REMAKE posted...

Amazon will replace best buy, target, and every single retail store in the future.

Best Buy yes, Target I am more skeptical about. A few big retail stores will probably stick around in areas with enough population because brick and mortar is still handy to have around. Even Amazon has actually opened its own brick and mortar stores in certain high density areas.
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CruelBuffalo posted...

Like i said, i'm ignoring any part saying they are good or bad. I'm saying it's stupid to pretend Amazon is struggling

Oh I agree. They just take advantage of the tax code like everyone else does. Just like Trump said, tbh.
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Sativa_Rose posted...

FFVII_REMAKE posted...

Amazon will replace best buy, target, and every single retail store in the future.

Best Buy yes, Target I am more skeptical about. A few big retail stores will probably stick around in areas with enough population because brick and mortar is still handy to have around. Even Amazon has actually opened its own brick and mortar stores in certain high density areas.

Let's put an Amazon and target store next to each other. Both stores sell the same exact products but Amazon has lower prices than target.

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27_Sandman_40 posted...

wasnt that the whole problem with monopolies to begin with? are we going to act like a good monopoly cant exist?

People just love to hate on big companies. It's the fashionable thing to do.
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27_Sandman_40 posted...

Sativa_Rose posted...

27_Sandman_40 posted...

wasnt that the whole problem with monopolies to begin with? are we going to act like a good monopoly cant exist?

People just love to hate on big companies. It's the fashionable thing to do.

its ironic because wouldnt conceding to universal health care be conceding to a big company?

Government isn't out to make a profit nor does it really function at all like a company.
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27_Sandman_40 posted...

Tmaster148 posted...

27_Sandman_40 posted...

Sativa_Rose posted...

27_Sandman_40 posted...

wasnt that the whole problem with monopolies to begin with? are we going to act like a good monopoly cant exist?

People just love to hate on big companies. It's the fashionable thing to do.

its ironic because wouldnt conceding to universal health care be conceding to a big company?

Government isn't out to make a profit nor does it really function at all like a company.

yeah a government thats trillions of dollars in debt isnt out to make a profit

LOL

You do know that debt is the opposite of profit.
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Sativa_Rose posted...

So people need to stop pretending like they are this evil monopoly

Just because they make little profit doesn't mean they aren't a monopoly, look up predatory pricing.
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amazon has been playing the long game and still are, running in the red for over a decade was about getting market share. even now they still don't capitalize on their market share as much as competing places like walmart because they're still busy trying to run everyone else out of business.
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Tyranthraxus posted...

Teddytalks posted...

Please list market share instead of this bullshit.

Define "Market Share"

Have you ever, like, had a real job in your life?
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TJ Maxx and Ross are in a fun little niche to avoid getting Amazon'd. Everyone else is screwed, though.
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27_Sandman_40 posted...

Tmaster148 posted...

27_Sandman_40 posted...

Tmaster148 posted...

27_Sandman_40 posted...

Sativa_Rose posted...

27_Sandman_40 posted...

wasnt that the whole problem with monopolies to begin with? are we going to act like a good monopoly cant exist?

People just love to hate on big companies. It's the fashionable thing to do.

its ironic because wouldnt conceding to universal health care be conceding to a big company?

Government isn't out to make a profit nor does it really function at all like a company.

yeah a government thats trillions of dollars in debt isnt out to make a profit

LOL

You do know that debt is the opposite of profit.

how do you get rid of debt?

Our government has been running a deficit for a while now.

Simply the government doesn't care if it makes a profit it runs fine either way.
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amazon's reported profit margins are among the worst ways to judge their earnings as a company, because their capital expenditures and investment purchases for expansion are part of their listed operating expenses

and they spent 27 billion on that in 2017

bezos' wealth keeps rising because amazon keeps growing faster and faster. so investors will pay more for 1 share of amazon each year.
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Darkman124 posted...

amazon's reported profit margins are among the worst ways to judge their earnings as a company, because their capital expenditures and investment purchases for expansion are part of their listed operating expenses

and they spent 27 billion on that in 2017

bezos' wealth keeps rising because amazon keeps growing faster and faster. so investors will pay more for 1 share of amazon each year.

Even if you look at EBITDA instead of actual profit, we are talking sub 20% margins. Brick and mortar stores cant stay in business with those numbers. Competition is a good thing. It provides your neighbors with jobs. I remember growing up as a kid in a small town when Walmart first came to town. A few stores closed. No one noticed all that much. Then, the super Walmart came in and brought more items, groceries, and a pharmacy. My home town is a shell of what it used to be. Pharmacies, grocery stores, repair shops, clothing stores, and furniture stores are no longer in business. The ones that stayed in business are now further devastated by Amazon. People need to look at the long term consequences of their actions.
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Amazon's labor practices and the "Wal-Mart effect" they have in areas where they set up their warehouses are good reasons not to like Amazon.
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C7D posted...

Even if you look at EBITDA instead of actual profit, we are talking sub 20% margins. Brick and mortar stores cant stay in business with those numbers.

that is an interesting point--can you find me the stats on TGT, BBY, etc margins?
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lol how childish is this topic

Next you're going to tell me poor hollywood is broke because their movies never make a profit.
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stone posted...

oh noes, they ONLY made 3 friggin' billions profit! They need government help to stay alive!

That $3B isn't profit. That's income, as in, before bills. As a company, that works out to about $50M profit, some of which they lose to taxes and profit sharing.
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Rika_Furude posted...

Tyranthraxus posted...

Teddytalks posted...

Please list market share instead of this bullshit.

Define "Market Share"

Have you ever, like, had a real job in your life?

I have been working jobs since I was 15 and have been with my current corporate employer for 4 years but I fail to see what that has to do with Market Share.
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Darkman124 posted...

C7D posted...

Even if you look at EBITDA instead of actual profit, we are talking sub 20% margins. Brick and mortar stores cant stay in business with those numbers.

that is an interesting point--can you find me the stats on TGT, BBY, etc margins?

I dont have all of it but yahoo finance gives a pretty decent look into the overall health of the company. Its obviously doing very well. https://finance.yahoo.com/quote/AMZN/key-statistics/
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Can someone clarify what they mean when they say Amazon didn't pay taxes, or have an article? Because usually people who say those kinds of things have no idea what they're talking about.
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Tyranthraxus posted...

Rika_Furude posted...

Tyranthraxus posted...

Teddytalks posted...

Please list market share instead of this bullshit.

Define "Market Share"

Have you ever, like, had a real job in your life?

I have been working jobs since I was 15 and have been with my current corporate employer for 4 years but I fail to see what that has to do with Market Share.

well if you had ever had any job of any importance you would have learned the definition of market share already
or had basic google skills
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C7D posted...

I dont have all of it but yahoo finance gives a pretty decent look into the overall health of the company. Its obviously doing very well.

i think we might be talking past each other

i was firmly in the camp that AMZN isn't just healthy but a powerhouse

hell, i bought shares of them in feb
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Darkman124 posted...

C7D posted...

I dont have all of it but yahoo finance gives a pretty decent look into the overall health of the company. Its obviously doing very well.

i think we might be talking past each other

i was firmly in the camp that AMZN isn't just healthy but a powerhouse

hell, i bought shares of them in feb

Yeah, we are on the same page. I just have an ethical dilemma shopping there.
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EndOfDiscOne posted...

Can someone clarify what they mean when they say Amazon didn't pay taxes, or have an article? Because usually people who say those kinds of things have no idea what they're talking about.

their model of selling from out of state locations allows them to frequently not be charged sales tax
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Darkman124 posted...

EndOfDiscOne posted...

Can someone clarify what they mean when they say Amazon didn't pay taxes, or have an article? Because usually people who say those kinds of things have no idea what they're talking about.

their model of selling from out of state locations allows them to frequently not be charged sales tax

Companies don't pay sales tax on their sales. The customer pays those.
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EndOfDiscOne posted...

Companies don't pay sales tax on their sales. The customer pays those.

the company is charged, but passes it to the customer immediately. what you pay, they then pass to the state.

by operating in this way, they can undercut local retailers for the same product, even when the price is the same.

for example, I bought the OLED65B7A for $2,299 from Fry's (Arizona) via Amazon. At Costco instore, it was also $2,299 but came with a 6% sales tax which brought it to 2436, an extra $136.

Because I could pay $136 less by buying from the amazon vendor that was located out of state, they got business and Costco did not.

Amazon takes a cut of all vendor sales, so they got money out of that deal too, and didn't even have to hold merchandise.
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Darkman124 posted...

the company is charged, but passes it to the customer immediately. what you pay, they then pass to the state.

Theoretically, no. The company is responsible for collecting and remitting sales tax, so if they fuck it up they'll owe the difference. But the liability is on the customer. That's why if you buy something from out of state and the company has no sales tax nexus in your state, you're responsible for reporting and paying the use tax on your purchase.

I understand that not charging sales tax gives them an competitive edge.

I think when people usually say "they don't pay taxes" they're talking about income taxes, and I want to know where this comes from in regards to Amazon.
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EndOfDiscOne posted...

I think when people usually say "they don't pay taxes" they're talking about income taxes, and I want to know where this comes from in regards to Amazon.

i can't say for certain but my assumption would be a similar method to what apple does, wherein they have all their earnings tied to individual divisions located in tax-advantaged locations and all other offices are treated as profit-neutral because they 'pay up' to the central corporate office (which, in apple's case, then pays up again to another office that does not exist)
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C7D posted...

Then, the super Walmart came in and brought more items, groceries, and a pharmacy. My home town is a shell of what it used to be. Pharmacies, grocery stores, repair shops, clothing stores, and furniture stores are no longer in business. The ones that stayed in business are now further devastated by Amazon. People need to look at the long term consequences of their actions.

Most of those businesses were just buying something from someone else and reselling it on their shelves, just middlemanning. It's hard for me to believe that all those other stores shut down too btw. My town has two Walmarts, one normal and one supercenter, and we still have a lot of all of the above. The only thing that might have been hurt are small little boutique shops like this one that sells records and CDs.
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Amazon puts almost all of it's revenue after expenses back into the company to build
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Sativa_Rose posted...

C7D posted...

Then, the super Walmart came in and brought more items, groceries, and a pharmacy. My home town is a shell of what it used to be. Pharmacies, grocery stores, repair shops, clothing stores, and furniture stores are no longer in business. The ones that stayed in business are now further devastated by Amazon. People need to look at the long term consequences of their actions.

Most of those businesses were just buying something from someone else and reselling it on their shelves, just middlemanning. It's hard for me to believe that all those other stores shut down too btw. My town has two Walmarts, one normal and one supercenter, and we still have a lot of all of the above. The only thing that might have been hurt are small little boutique shops like this one that sells records and CDs.

Believe what you would like. I got educated and left. My former high school classmates did the same. I still visit from time to time. The place is turning into a retirement community. Pretty much you have to do some kind of nursing, make car parts in the factory, commute an hour to work, some commute that hour to do fulfillment with Amazon, make fast food, or go to work at Walmart. I cannot speak to the dynamics of your community which supports two Walmarts. Ours could only support one. Most all of our businesses were specialty boutiques. Our town has about 2000 people. Every time I go there to visit family, I get more and more sad about what used to be.
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