Quote:
Originally Posted by bcbgcbrcb
As a retired 30+ year finance guy, I can tell you that the real profits going to e-bay with this new set-up will be the float time on the money that they collect instantly from the buyer and hold for 3-5 days until they deem the funds ready to deposit into the seller's bank account. Take those numbers times the tens/hundreds of millions of buyers and sellers and that's where e-bay is making the real money. The .001 or whatever fees you are saving as a seller is vastly negligible when compared to those profits that they will be enjoying.
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This won’t accumulate enough to be a rounding error. Based on the sales price it adds only about 0.01% more to earnings after already making 10.00% in Final Value Fees. That’s 1/100th of a percent more. Calculated as 1% overnight interest rate times 3-4 days divided by 365 days in a year. Doesn’t even consider the loss of a day until they receive payment and loss of another day when they process the ACH the day before the seller receives payment.
Float Income basically doesn’t exist anymore.