4 ms·
FBA is Amazon's way of populating their store shelves with someone else's working capital. It's only going to go up, not down because every dollar sold by the s
by sfifs 10y ago
FBA is Amazon's way of populating their store shelves with someone else's working capital. It's only going to go up, not down because every dollar sold by the seller means a dollar if cash freed up from working capital requirements for Amazon.
Amazon's competitive advantage is the marketplace which gets an unrivalled number of eyeballs and their warehousing amd logistics operations. They're perfectly happy to rent these out to other sellers rather than lock in money into inventory - unless profits are outrageously high.