Diapers & Jet.com: Marc vs Amazon. SE02 EP05

Diapers are loss leaders They are loss leaders because retailers are on a race to the bottom. The retailers are pricing it down to get customer to the door of their stores. But Marc decided to go ahead because with the internet, There is unlimited store space, with room to display more high margin products than the regular stores. Marc wasn’t willing to let go of the idea. They decided to move on regardless even when faced with a threat from Amazon.