Would not having a 3rd party handle the logistics cut into their profit margins? I would assume because they do it in house and at such a large scale they save money vs hiring a 3rd party that would want their own cut raising logistic costs.
Yes. They did that at the beginning, but since they scaled up they have brought a lot of it in house.
I was addressing the fact that even though they did logistics/warehousing, I still believe them to be a database frontend (inventory/customer/credit cards), and I disagree with the above statement:
> However, I'll disagree with Amazon.com. Purchasing real world products is much more than just a database frontend.