Let’s be the next Amazon

Gross margins by product vertical may be boring to talk about, and almost as boring to think about (trust me on that), but they are a strong indicator of whether a start-up can be profitable.

If you have a start-up and the only unique feature, in fact, your unique selling point, is delivering a product or service, that someone else manufactures, with a very minimal gross margin, then you’re in trouble.

You will make a lot of sales, but you won’t make much money.