You would be correct, except amzn is just one among a growing list of retailers that will be competing. Competition doesn't end on the internet. If anything, it intensifies. Your argument seems to confuse AMZN with "the" internet. Just like WalMart must compete, so must AMZN. The competition is just now starting. There are no free lunches in this world. Advertising alone can't sustain this novelty, once the big boys enter the game. And they will enter it quickly.