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Amazon could have had a margin of zero and still made money. What?
by monochromatic 14y ago
Amazon could have had a margin of zero and still made money.
What?
- snowwindwaves 14y agothe article says because they get the customer's money right away, but don't pay the supplier for months, they have a big pile of cash. I suppose they could make money with that money before they have to pay their bills.
- DanBC 14y agoThis is such a well known problem that the UK had to implement laws. If you can get people to pay you quickly (in advance is best, on delivery is ok, 30 days after delivery is standard) and you can delay paying your suppliers (90 days after delivery is best, 60 days is ok, 30 days is standard) you can improve cash flow and there are a bunch of benefits to it. I don't think it's legal in the UK anymore. It's very easy for a big company to squeeze little companies into accepting really lousy terms.