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Loaning money to their merchants allows their merchants to buy more inventory to ship to Amazon to sell. Thus Amazon benefits by making more sales, too.
by mcpherrinm 7y ago
Loaning money to their merchants allows their merchants to buy more inventory to ship to Amazon to sell. Thus Amazon benefits by making more sales, too.
- pbhjpbhj 7y agoIt's crazy really, they loan the money they would in the past have to use to buy stock, but they also don't have to pay for warehousing (straight away). Presumably it helps with inventory management too - like the loanee indicates the inventory they're buying which means Amazon can factor that in. Then they charge interest ... However, whilst this sounds good for Amazon, is it more efficient - in economic terms - or does it just reduce Amazon's risks and costs.