Great article discussing Amazon’s clearly-stated business model, why its profitability is both controlled and a long way off.

If I were an Amazon competitor, Id actually regard Amazon’s current run of quarterly losses as a terrifying signal. It means Amazon is arming itself to take the contest to higher ground. The retail game is about to become more, not less, punishing.

Amazon and the

via Amazon and the “profitless business model” fallacy — Remains of the Day.