Thin margins are a sign of an efficient free market. Any long lasting large margin is a sign of a market failure.
Maybe Amazon is just really good at that free market thing.
I agree though that it's starting to be time they get a more viable competitor. I'm sure, however, that when they decide to actually try and make a profit instead of just grabbing market share, competitors will pop up. In the mean time, while they continue to operate at zero profits, basically as a charity to consumers, this is a win for efficient free markets and consumers (read everyone) in general.
There's a few other players trying to do similar things. The big box stores are getting better at their online fulfillment. Sears is famously going that route putting a bunch of brands together. No one has come up with the silver bullet to really eat into Amazon's market though, so time will tell.
Maybe Amazon is just really good at that free market thing.
I agree though that it's starting to be time they get a more viable competitor. I'm sure, however, that when they decide to actually try and make a profit instead of just grabbing market share, competitors will pop up. In the mean time, while they continue to operate at zero profits, basically as a charity to consumers, this is a win for efficient free markets and consumers (read everyone) in general.