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  I use the Lord of the Rings series case to show how Amazon works and thinks in many aspects of its business. It may not sound new to some readers who already came across my articles on big tech: given the size of these companies, I tend to focus on one particular move or investment they are making to understand and extrapolate the business culture of each of these companies and the way they expect to make profits. Just a reminder: this article is not about the quality of the series, nor does it aim at stating whether it is better than others or not. It aims only at checking some assumptions made in the summer to see if Amazon's huge bet is paying off or not. From what I see, Amazon has already obtained more than needed. Since I think the first season had the aim to introduce viewers back into Middle-Earth and introduce them to many key characters. Action was somewhat lacking. But I think the slow pace of the series is something that shows how Amazon works and thinks. When the company bets big on something it doesn't aim at immediate profits, but at building a solid branch or division or franchise that has durability and future scale. I think we are just at the early innings of a game that Amazon will play to the end and that has the possibility to go on for at least a decade.

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  So when you drop off an Amazon return, the UPS store manager isn't thinking "oh great, another cost we have to eat". If they think about it at all, it's the realization that without Amazon's business UPS would be in a lot of trouble -- $12 billion dollars worth of trouble. Amazon's sales volume and its dependence on UPS have grown so great that packages from the e-commerce giant account for as much as one-third of the delivery company's residential loads, says the Wall Street Journal. But don't assume that UPS is getting rich on all this business: To provide free shipping to Prime members, Amazon has driven hard bargains with deliverers, and UPS's average revenue on each internet-related package is dropping. One former industry executive doubts UPS's margins are as high as 5%, the Journal says.

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  So when you drop off an Amazon return, the UPS store manager isn't thinking "oh great, another cost we have to eat". If they think about it at all, it's the realization that without Amazon's business UPS would be in a lot of trouble -- $12 billion dollars worth of trouble. Amazon's sales volume and its dependence on UPS have grown so great that packages from the e-commerce giant account for as much as one-third of the delivery company's residential loads, says the Wall Street Journal. But don't assume that UPS is getting rich on all this business: To provide free shipping to Prime members, Amazon has driven hard bargains with deliverers, and UPS's average revenue on each internet-related package is dropping. One former industry executive doubts UPS's margins are as high as 5%, the Journal says.

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  So when you drop off an Amazon return, the UPS store manager isn't thinking "oh great, another cost we have to eat". If they think about it at all, it's the realization that without Amazon's business UPS would be in a lot of trouble -- $12 billion dollars worth of trouble. Amazon's sales volume and its dependence on UPS have grown so great that packages from the e-commerce giant account for as much as one-third of the delivery company's residential loads, says the Wall Street Journal. But don't assume that UPS is getting rich on all this business: To provide free shipping to Prime members, Amazon has driven hard bargains with deliverers, and UPS's average revenue on each internet-related package is dropping. One former industry executive doubts UPS's margins are as high as 5%, the Journal says.

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