Is Amazon About to Get $8 Billion in Free Money?
Amazon's (NASDAQ: AMZN) core strategy has long been to go after market share and deliver profits later, once it's accumulated a critical mass of customers.
In e-commerce, for example, the company made itself the leading online retailer in the U.S. with a focus on competitive prices, wide selection, and fast delivery. The e-commerce segment was further enhanced by its Prime membership program.
While that focus on being competitive has been a winning strategy with customers, allowing it to capture roughly 40% of the e-commerce market in the U.S., it's often failed to turn a profit. As recently as last year, Amazon lost $2.8 billion in its North America segment, which is mostly made up of e-commerce, a business it's been running for nearly 30 years.
Source Fool.com
