Amazon DD+7 AKA DD+ When They Feel Like It - Sweep Account

I like being motivated by Sales, Accomplishments, Awards, Winning and Recognition. Like many of you I spend a lot of time planning, for me 80% planning and 20% work.

The two worst things about DD+7; It is not the Delivery Date plus 7 Days. I am not going to review that here however, one example… We have had a few orders where people order three things by FBA. The entire order shows as “Pending, Awaiting payment verification” yet one or two items ship, the one they can not ship sits there. The order does not get released to DD+7, until the last one is gone.

I have gone from motivated to…

Please Sir May I have Another

Just one example not the main point of this thread.


First the AI then Actual Intelligence…

What are the total annual sales by independent third-party sellers on Amazon?

Total annual sales by independent third-party sellers on Amazon account for over 60% of all physical merchandise sold in Amazon’s stores. In 2025, third-party sellers generated over $400 billion in estimated merchandise sales.

What does the average amount a company make on sweeping accounts for 7 days?

A company’s 7-day earnings on a sweep account depend entirely on its surplus cash balance and the 7-day SEC yield. Assuming current money market and bank sweep yields of 3.50% to 4.50%, a business with an excess balance of $100,000 will earn approximately $67 to $86 per week.

What is the average amount a company makes on a FDIC sweep account for 7 days?

The average amount a company earns on an FDIC-insured sweep account depends heavily on the yield structure of the account. Rates range from low-yield standard bank deposit sweeps to higher-yield money market or treasury sweep networks 3.00% to 5.00%.

Now to a bit of Actual Intelligence, AKA AI…
Therefore;

400 Billion or $400,000,000,000.00 a year over 7 days (rounding up one half penny) is $57,142,857,142.86. Over 57 Billion in Sweep Invested every week. At 5% that would be $25,562,468.55 a week. Over $25.5 Million made off the backs of sellers each week with DD+7 and sweep accounts. They likely get better than that since they would be sweeping $400 billion a year.

Source, my brain trained on a slide rule, and my Partner/Wife’s brain headhunted out of our company four years ago to the 10th largest bank. Plus our combined community service of over 63 years on community boards. Including local and regional boards, me as chairman for many years and for her, also Town Treasurer for 18 years. Thus an understanding of Sweep Accounts based on this experience. Now we may be off by a Million/Billion or so, but chump change to Amazon.

That is $1,329,248,364.60 or nearly $1.4 Billion a year!

…and be sure to say, “Thank You Sir, May I Have Another.”

thank-you-sir-may-i-have-another

Like I imagine everybody else, I’m saving a lil’ bit of cash for June 12th and the launch of Space X’s IPO. They are saying that the IPO is $105/share, but by the time the market actually opens for us mortals, it’ll probably be a lot higher, with some estimates saying over $1k/share
I’m still going to try to get some because I ain’t betting against Elon, nor the best marketing in the world.

With that said, and as somebody who’s been selling on Amazon for enough years now, I fully understand that Amazon’s business is not making money from customers but from the buyers, whether by fees or by keeping the money in the reserve. It doesn’t matter. Amazon is like the bank in monopoly, it can’t go broke, it won’t go broke in the next few years despite sentiment, politics, or any other emotion. W Buffet said it best, the share doesn’t care about feelings.

Where I’m going with this, while I’ve hated the money that Amazon’s kept in reserve (in my case from day 1), mature company AMZN has grown 60% over the last 5 years. It may not be the potential 10X of an IPO, but I have no doubt that it will return another 60% in 5 years. I will continue to get AMZN shares whenever possible, understanding that Amazon has fully transitioned from a marketplace to a financial company, financed every day with schemes like DD+7 paid both by Pakistani sellers that got deluded by a TikTok, and good established sellers like yourself.

Part of our conversation, she said, “Why in the world would they do this. Everyone is going to hate it.”

I quickly responded, “Not the shareholders, they are going to love it!

Can’t beat ‘em, join ‘em

That is how I ended up selling on Amazon, in eCommerce before it was eCommerce.

In 1989 we sold by mail order, the 90’s brought us to develop a WISIWIG BBS (What You See is What You Get Bulletin Board System) then our own websites. Selling on Ebay, that worked, but the customers flocked to and grew Amazon. Started on AZ 14 years ago.

I would have much more sold on our own websites, it came to a point…

I Couldn’t beat 'em, so I joined them.

Life on the river, always changing.

Should have just bought stock, it would have been a simpler life.