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The big merchandisers have state of the art automated warehouses in Memphis, adjacent to the FedEx hub. Anticipatory stocking is managed by sophisticated predictive-selling models. FedEx extends its cutoff to after midnight for next day delivery with partner companies. All of these tactics help get product to you quickly.
From a cost standpoint, I suspect Amazon rationalizes small losses on a small percentage of sales in order to gain additional sales based on the fast delivery promise. It's a (carefully) calculated risk.
In our business, we catalog parts that sell at very low volume to an equal standard to the parts that sell at very high volume, for the same reason. It's a customer service standard, and it creates differentiation for us against all the alternative companies operating on the old '80/20 rule.' It all evens out.
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techweenie | techweenie.com
Marketing Consultant (expensive!)
1969 coupe hot rod
2016 Tesla Model S dd/parts fetcher
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