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Amazon Is Quietly Eliminating List Prices

nytimes.com

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Re: Amazon Is Quietly Eliminating List Prices

#3

Could some one explain how this works? ...the strategy was to lose on every sale but make it up on volume

The explanation is alluded to in the second half of the paragraph you quoted: It was a land-grab strategy to build a customer base in the nascent online retail market.

Edit: There are other ways that Amazon leverages volume to be able to sell at what appears externally to be a slight loss, but I believe in the context of the quoted paragraph the person being quoted is simply referring to the above.