This was almost our exact line of thinking when Michael and I started Everlane (<a href="http://everlane.com" rel="nofollow">http://everlane.com</a>) in early 2010.<p>You must be able to answer the "Amazon question" if you're starting an online commerce company. If your product category makes sense on Amazon, they'll obliterate your margins the second you're successful by using revenues from high-margin categories (think: AWS, e-books, etc.) to subsidize low prices for products in your category.<p>That's when the acquisition offer comes. Just ask Zappos or Quidsi. Who has the leverage in that situation?<p>It's harder, but if you sell something nobody else does† and successfully brand it, Amazon won't ever be able to compete. If J.Crew, GAP, LVMH, Hermès, etc. ever go out of business it won't be because of Amazon.<p>†: Vertical integration, i.e., "making your own stuff," is just one way to satisfy this condition.<p>So far it's the only to really work, but companies like Shoptiques are trying to satisfy it other ways.