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You'd think, but you'd often be wrong. If you're a small retailer, even with the "wholesale discount" ordering from the major US wholesalers, you'll still be undercut by Amazon fairly often. You don't get the equivalent discounts until you're ordering tens of thousands per order from individual suppliers, if ever. That means you're not just a busy store but a busy chain of stores.

My parents own a health food store. They pick up a few of the products they carry whenever they're at Wal-Mart, because Wal-Mart's retail is below the manufacturer's wholesale rate for them. Obviously they don't make much margin on those things, but their customers want them to carry them anyway.

Amazon is fine with acting as a supplier for other stores. They will take sales tax exemption forms for reselling their items.



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