About e-commerce is degree to which it is scale business

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"The thing a lot of people don't understand about e-commerce is the degree to which it is a scale business," says Jeff Bezos, CEO of Amazon.com. Where a conventional retailer might have to double its capital spending to double sales, Amazon's costs are largely fixed.

1) "Once our software is written, we can handle a lot of customers with it," Jeff Bezos said. Explain what this paragraph means to you.

2) Do you think Amazon's private label business would accumulate as big scale sales as its mainstream re-sale operations? Support your statement with examples.

Reference no: EM132224313

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