4 ms·
At some point, when you're handling all the customer money, and the merchant money, and the supplier money, you become the ultimate middle man as everyone owes
by twistedpair 12y ago
At some point, when you're handling all the customer money, and the merchant money, and the supplier money, you become the ultimate middle man as everyone owes you money and the actual amount of money you need to move gets small and smaller because you're just netting internal accounts. There must be some massive savings (read profit) to be made there, when the entire economy is really just Amazon.
- MaysonL 12y agoGood point: note that they get the customer's money before they pay the supplier (their accounts payable are a multiple of receivables), and they sell the merchandise before they pay for it (their payables are a multiple of their inventory).
- auxbuss 12y agoIt's even stronger than that. They also acquire massive cash-flow. And as every accountant will tell you: Cash-flow is king.