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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[–] 1 point 2 years ago (1 child)

What do you think profit is? It seems like you're conflicting profit with income.

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

    Profit is revenue - cost of goods.

    If you make a widget and it costs you $100 to make, and you sell it for $110, you have $10 profit. Then you have all the other expenses that it takes to run a business, lets say that's $200.

    Your revenue is $110

    You profit is $10

    Additional Expenses: $200

    You NET profit (AKA Net Income) is $-90

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