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Amazon Artificially Discounting Items $0.01 Below the Free Shipping Limit (lemm.ee)
submitted 2 years ago by to c/mildlyinfuriating@lemmy.world
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Amazon gives non-Prime members free shipping at $35 or more of eligible items. Instead of simply letting users get the product with free shipping, they've added a discount that prices it exactly one cent below the $35 limit, while only subsidizing the price with $3.38, which is about half of what they'll then charge you for shipping.

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[–] 2 points 2 years ago* (last edited 2 years ago) (2 children)

This is why you're wrong

Profit is revenue minus cost of goods

NET profit or net income is after expenses unrelated to cost of goods.

If a widget costs you $100 to make and you sell it for $100 that's $0 profit.

Tack on all the other expenses to run a business and now you're in debt.

Profit is not NET profit.

"Profit" is a general term referring to the money a company earns after subtracting the cost of goods sold from its revenue, while "net profit" is the final profit remaining after all expenses, including operating costs, taxes, and interest, are deducted from revenue, representing the company's true bottom line profitability

Edit: Below shows some guidelines, on how they can earn profit.

NON PROFITS can earn profit, they're just restrictions on it.

Yes, nonprofits in the United States can earn a profit, but they must reinvest it back into the organization. Nonprofits are tax-exempt and are formed to serve the public, so they can't distribute profits to individuals. How nonprofits make money

Donations and fundraising: Nonprofits raise money through donations and fundraising events

Earned income: Nonprofits generate income through activities related to their mission, such as:

Selling merchandise

Charging fees for services Renting out space Selling food

How nonprofits use their profits

Program growth: Nonprofits use profits to grow their programs, hire staff, and upgrade technology Sustainability: Nonprofits use profits to build reserves for long-term sustainability Fundraising: Nonprofits use profits to attract more support through fundraising efforts

Restrictions on nonprofit profits

>Nonprofits can't distribute profits to individuals
>Nonprofits must reinvest all surplus funds back into the organization
>Nonprofits must ensure that their revenue is directly related to their mission
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  • [–] 0 points 2 years ago

    So a service company that only pays salaries has 100% profit?

    This is splitting hairs and if all the people arguing about this took an actual class in uni a out this they would know that.

    Gross profit typically includes cost of goods sold, COGS doesn't have an explicit legal definition, it's up to the business to decide what they include, they can include employee salaries or not, this is called abortion costing, a business which puts salaries, rent utilities, etc, under abortion cost would have a gross profit equal to their net profit.

    When dealing with accounting, you can call things whatever you want, net profit isn't something that has a legal definition.

    For example, I just decided that my business doesn't follow your definition of profit, and instead defines profit as only money I find in my pockets. There isn't a legal definition of how I need to define profit, so it's just as valid as all the other definitions.

    And regardless of all that, I don't understand how anything you said proves me wrong. Profit is net profit, just the same as profit is gross profit, you can put an arbitrary boundary at any point in a financial metric and it makes sense to do so, but it doesn't change what the word profit means. But the claims that 'if you don't profit you have to go in debt' is just silly and only makes since if you cherry pick a very narrow definition of profit that is used as one part of a general financial metric for a business.

    A company that has revenue - all expenses = 0 does not need to be in debt, this is also how a non profit will look, 1 million in revenue, 500k in general expenses, 500k reinvestment into the company final result 0 dollars left over. The effective meaning and understanding of profit for practical purposes and lay people (not book keepers within a company that needs more refined and specific metrics) is the amount of money that gets distributed to stakeholders after a company has covered its expenses.

    Your block about non profits is exactly my point. A non profit does not pay out the left over money to stakeholders but people who work for a non profit still make money.

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