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Also, their way to avoid tax by using the IOM.
What is however worrying is that Amazon is struggling. Despite being inventive and using all tricks in the book, they're having a hard time. [now I am not saying they're the most ethical company but if they are one of the few to survive the .com bubble and still have to fight, it means it's not easy out there]
If Amazon had to pay corp tax at the same rate your average corner shop did then they wouldn't be able to dominate in the way they do. The entire tax system is broken, The concept of making no money from a business turning over millions or billions because they've reinvested it in growth to make more money is so unbelievably fucked as to be laughable.
Until this changes the bigger you are the bigger your competitive advantage.
Also, cheap books what come real fast.