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by hoofhearted 1071 days ago
Prime day is actually a copycat of Alibaba’s Singles Day that happens on November 11th.

Also, Amazon doesn’t “clear” out their warehouses. They charge sellers to story inventory in their warehouses. The longer items sit unsold, the more amazon makes off of the seller in FBA fees.

2 comments

> The longer items sit unsold, the more amazon makes off of the seller in FBA fees.

Really depends on the volume of the item and the selling price. I'm sure Amazon would prefer shipping the item and collecting the 15-20% closing fee in most cases. The alternative is building more warehouse, so the decision comes would they rather continue expanding existing fulfillment centers or build new ones in strategic locations.

Amazon doesn't build warehouses either. They lease them from Prologis and others as they grow capacity.
Same logic applies because leasing > $0
> Also, Amazon doesn’t “clear” out their warehouses. They charge sellers to story inventory in their warehouses. The longer items sit unsold, the more amazon makes off of the seller in FBA fees.

Yes but 2 things can be true at the same time. Amazon can make money of stuff sitting in the warehouse and they/their clients can want to sell stuff so that they can make room for more stuff or just clear old inventory off the books. I'm not sure how you get "included" in Prime Day but I assume sellers do something to opt-in.