A lot of folks, especially Apple supporters, like to characterize Amazon as irrational, even crazy, for its willingness to live with low margins. It must be frustrating to compete with a company like that. But to call their strategy irrational or to believe they want to be a non-profit is a dangerous misreading of what they’re all about.
A fantastic dive into why Amazon’s low margins don’t matter. Amazon is calculated in their risk taking, and they win because they are willing to play the margin game.