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... it's all the other stuff they sell. They make it easy for small-time sellers to sell thru Amazon rather than a brick-and-mortar store that takes too long to build up traffic. When Jeff Bezos first started Amazon online, he was actually losing money selling books, or barely breaking even. It took a few years to iron out the kinks and to get people to trust online shopping. Now he's the king of retail.
I understand that book retailers are having a hard time competing with Amazon. But it's because they don't share Bezos' vision and they scoffed at what he was trying to do. He did it first and now he's the clear winner.
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