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In this case, the vendor should just increase their prices to reflect the interest on the credit that they're extending Amazon for those twenty days. This is e
by codex 13y ago
In this case, the vendor should just increase their prices to reflect the interest on the credit that they're extending Amazon for those twenty days. This is equivalent to Amazon borrowing from a bank for those 20 days, but perhaps for some reason the creditor's interest rate is lower than the bank's.
- shmerl 13y agoYes, it's equivalent to a loan with no interest rate. Whether vendor has to increase prices or not - that's up to the vendor. I just described how Amazon has a potential to profit from lower than common prices and fast shipping - it increases this loan time window.