Your startup is a bubble when your COGS are greater than revenue

Business practices like this are what the public are going to scrutinize because it’s hard to rationalize this into a story that doesn’t sound flawed.

Jet.com recently listed these 12 items on its website but filled orders for the items by buying them from other retailers. As a result, Jet paid a total of $518.46, or nearly twice as much as it charged the customer.
Frenzy Around Shopping Site Jet.com Harks Back to Dot-Com Boom – WSJ.

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