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why did amazon record zero profits for almost a decade after it was fir…

Question

why did amazon record zero profits for almost a decade after it was first founded?
the founders initially resisted the idea of offering advertising.
its leaders sought to blend user-friendly experiences with quality products.
the site was initially limited to students before opening up to the wider public.
it focused on investing in its ecommerce infrastructure and expanding its product lineup.

Explanation:

Brief Explanations

Amazon's early focus was on building a strong e - commerce infrastructure (like warehouses, logistics systems) and expanding its product offerings (from books to various other products). This required significant investment, which ate into potential profits. Advertising resistance (if true) would not be the main long - term profit - related reason. Blending user experience and quality products is a good business strategy but not the direct cause of zero profits. Limiting to students initially is not a major reason for long - term zero profits as it expanded.

Answer:

It focused on investing in its ecommerce infrastructure and expanding its product lineup.