Quote:
Originally Posted by Fluribus
Amazon isn't giving up profits. The sellers own the merchandise. Rather than ship the items directly to buyers they send the item to Amazon. When the item sells it comes from Amazon.
The seller is giving Amazon a share of the profits because they get exposure to Amazon customers. Buyers see that it is fulfilled by Amazon and feel more confidence. Some will be encouraged to purchase in an effort to get free shipping. If sellers get bad feedback due to shipping problems, Amazon will step in to take responsibility for it.
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Ah, looked at from that perspective it makes more sense. There is definitely a reason I got an engineering degree instead of marketing!
