> Amazon picks the places where it can hire extremely cheap labor, because usually they are the only game in town
That only works for some of their locations. They are limited by the need for their distribution centers to be in good proximity to the customers they deliver to. In my area, that means their largest distribution center is in one of the more expensive areas of the city. And the other big one is in a less-nice area that is probably still fairly expensive because it's close to the center of the metro area.
Sure, but their move into cities was after they already had a brutal margin and the free money press of AWS.
And cost pressure always applies.
They might put smaller less labor-intensive centers in those places. (Maybe a handover depo for last-mile delivery with some Prime stuff.) Though, of course, maybe the cost of managing non-uniform centers is more than vice versa.
That only works for some of their locations. They are limited by the need for their distribution centers to be in good proximity to the customers they deliver to. In my area, that means their largest distribution center is in one of the more expensive areas of the city. And the other big one is in a less-nice area that is probably still fairly expensive because it's close to the center of the metro area.