Delivery Based Reserve - why Amazon will not reverse the policy
Not sure if anyone has done the math on just how much Amazon are gaining on this, but from publicly available information, their UK turnover is 24 Billion, of this 59% of revenue comes from 3rd party sellers.
Funds therefore generated by 3rd party sellers amounts to 14.16 billion.
If you assume that they are withholding funds on average for 1.5 weeks then this means that they will have 404 million of 3rd party sellers funds sitting in the bank, think of the interest that is earning them over the course of the next 12 months and you can see why this policy is here to stay, a large chunk of sellers already had this reserve anyway so this is not all new money, but they certainly will be adding huge sums to it.
No doubt they will use the extra funds to increase Amazon Lending, especially as they are pushing people to the point where they now need it, this then increases their annual interest on the money to 13.99% which I believe is the current rate being offered.
Delivery Based Reserve - why Amazon will not reverse the policy
Not sure if anyone has done the math on just how much Amazon are gaining on this, but from publicly available information, their UK turnover is 24 Billion, of this 59% of revenue comes from 3rd party sellers.
Funds therefore generated by 3rd party sellers amounts to 14.16 billion.
If you assume that they are withholding funds on average for 1.5 weeks then this means that they will have 404 million of 3rd party sellers funds sitting in the bank, think of the interest that is earning them over the course of the next 12 months and you can see why this policy is here to stay, a large chunk of sellers already had this reserve anyway so this is not all new money, but they certainly will be adding huge sums to it.
No doubt they will use the extra funds to increase Amazon Lending, especially as they are pushing people to the point where they now need it, this then increases their annual interest on the money to 13.99% which I believe is the current rate being offered.
8 replies
Seller_19xPhE8YgkmxW
Hello Langley_Projects,
It is possible that another factor might be unscrupulous sellers offering costly items at advantageous prices but sending worthless goods.
Having then received lots of orders in a short time period, they disappear leaving Amazon to ‘foot the bill’
All Best
Brian
Seller_7XKkvpKqKRaqK
lets face it amzon can do what they want but i do see a positive as only one set of rules for ss to learn so hopefully less mistakes but i doubt it lol
Seller_fFylOZ9rejlBH
I’d love to know what your take is on how much a typical UK bank invests in a year.
I follow your logic completely.
It’s essentially unregulated borrowing. They are borrowing our money and what protections do we have? Precisely NONE!
