Amazon Isn’t Too Worried About Profitability…
- Posted by Tech Insidr
- on February 1st, 2012
Amazon has a knack for using packages that are 10 times the size of the actual product, but this example really takes the cake.
Tara ordered 2 valve caps from Amazon and received a package that was at least 1 foot wide and 2 feet deep. Don’t you think that is a bit excessive?
“Why do they not have envelopes to use?” she asked.
I’m sure Amazon investors are wondering the same thing.
Although this post carries a somewhat humorous tone, rising shipping costs remain a legitimate concern for Amazon.com, who recently disappointed investors with less-than-stellar Q4 results yesterday.
Going forward, Amazon needs to re-think their “one size fits all” packaging philosophy if they want to improve their profit margins and long-term profitability.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Rob a.k.a. Techinsidr has been trading stocks and following the stock market since 1997. He formerly worked at Intel Corporation in a Financial Analyst role, responsible for overseeing an annual budget of $160M... More »