Re:“Amazon is holding over 4.2M dollars, suffocating our bus...
by mrighele on Tuesday April 28, 2020 @04:34PM
(#23011622)
Maybe their models already take into account this and the cost of lost commissions in such events is lower than the cost of increased scams.
"Now, should we tweak our process ? Take the number of merchants in the marketplace, A, multiply by the probably rate of false positive, B, multiply by the average cost of lost commissions C. A times B times C equals X. If X is less than the cost in increased scams, we won't do it".
"Are there a lot of these kind of issues?"
"You wouldn't believe"
"Which cloud company do you work for?"
"A major one"
1- data driven 2- revenue maximizing
They’re constantly tweaking the website in order to even marginally increase revenues. Halting the transfer of funds hurts Amazon’s bottom line because those companies would just be using that money to replenish sold inventories. It’s unfortunately not a direct measurement, but if halting the transfer of funds resulted in the business going out of stock on Amazon, or leading to more delayed fulfillments, canceled orders, less satisfied customers, more refunds, etc then Amazon lost future commissions due to this. If Amazon can update their statistical models to prevent such potential loss of sales in the future without risking more false positives, then their in-house quants have strong incentive to do so.