Amazon gives non-Prime members free shipping at $35 or more of eligible items. Instead of simply letting users get the product with free shipping, they’ve added a discount that prices it exactly one cent below the $35 limit, while only subsidizing the price with $3.38, which is about half of what they’ll then charge you for shipping.
AWS didn’t exist until after Amazon became profitable. They were already making good long-term decisions before AWS.
Right, back when they were just a bookstore. All I really know about Amazon is that they focused on long-term profitability over increased short-term profits to expand and capture more of the market, and it worked. The problem is that not everyone can do that. They spent every year since 1994 operating at a loss, when anyone else would have been snapped up by another company in the space, and it’s not clear how that didn’t happen. The landscape of e-commerce would have been very different if it had.