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. 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 Harks Back to Dot-Com Boom – WSJ.