If amazon is overpriced, the item might not be available from other channels/requires lots of work to get.
Another (related) point is that amazon is less risky than other options. You can usually get something cheaper from ebay/alibaba/banggood/etc
Somebody always has some nitpicky example, but in my experience amazon has reliable shipping and a predictable low-friction way of getting a replacement or your money back if something goes wrong.