That's what those huge ~10% final value fees they charge are for. And other revenue such as sponsored listings (pay to boost your item in search results).

As long as they keep the fraud volume below like 5% of sales, I feel like it's just a numbers game, where they just need to get as much sales onto their platform as possible to give them enough operating margin to cover their costs (including fraud) and provide profit.

Admittely, I have no idea how well they're doing at that, I haven't looked at their financial statements or anything.

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rtkwe a day ago | parent [-]

Yeah my main point was it's a complete pain in the ass to deal with if you want to do it properly in a way that actually prevents fraud on either side. eBay has kind of just erred one side or the other for most of it's existence and right now the complaints are mostly from the seller side that I see.

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Scoundreller a day ago | parent [-]

I guess that’s why the Amazon model works: if you warehouse and deliver, then you cut out a lot of the fraud.

Sellers gotta deliver one way or another anyway so building out that logistics doesn’t add much friction to the whole process at scale. If things turnover quickly enough, the first mile benefits exceed the warehousing expense.

	▲	rtkwe 19 hours ago \| parent [-]
		Amazon's return policy is also getting pretty bad. There's a lot more third party sellers on the platform and occasionally users sent incorrect items get their refund refused because "item not returned" which is extremely frustrating when it happens. They're also kicking more people off for returning large numbers of items. And as to GME trying to shift to that they did attempt that already, it was one of RC's first attempts at pivoting back in 2022, they added something like a million square feet of warehouse and fulfillment and it didn't really work.