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by CodeWriter23 1070 days ago
> 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.

1 comments

Amazon doesn't build warehouses either. They lease them from Prologis and others as they grow capacity.
Same logic applies because leasing > $0