I have some exposure to this industry and subsidies do happen. It's written off as a customer acquisition cost.
So when you see $20 of Amazon coupon being sold for $10 and wonder how on earth it makes sense for anyone (except the customer, of course) - the deal is most likely being subsidised. Hot deal, creates word of mouth, brings in new business, works better than any other form of advertising for immediately converting visitors into customers.
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I have some exposure to this industry and subsidies do happen. It's written off as a customer acquisition cost.
So when you see $20 of Amazon coupon being sold for $10 and wonder how on earth it makes sense for anyone (except the customer, of course) - the deal is most likely being subsidised. Hot deal, creates word of mouth, brings in new business, works better than any other form of advertising for immediately converting visitors into customers.