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this post was submitted on 23 Jul 2023
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Explain Like I'm Five
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Two things. Commercial real estate required for physical book stores is expensive. Amazon has warehouse space, but so does the bookstore company. Volume discounts. Amazon probably sells double the volume of their next biggest competitors. This allows them to purchase the books for cheaper than their competitors. This also goes for shipping. They make the same kind of arrangement with USPS that allows them to purchase shipping at a discount since they buy so much of it.
There are other reasons, but those are the biggest.