In this case, the only delay is the 7 day holding period after the latest possible delivery date.
For example, if you sell and deliver a product on Jan 1st, you may be able to disburse the funds as soon as the 8th.
However! This example does not hold for the situation described by the GP because no tracking information can be provided to Amazon. In which case, the longest possible delivery period in the shipping method selected will be used.
More importantly, what the seller did as described by GP is big liability, for two reasons:
1. Phone numbers should never, ever, be used to contact the customer directly. They are for the seller to give to the carrier. This is a violation of Amazon's ToS.
2. Sellers should never, ever, deliver directly to buyers. Not only will this hurt their valid tracking rate metric, but it also makes them a very easy target for item not received cases as there is no proof that the item was delivered. The only recourse in a case like this would be through small claims court.
And on a much more minor note, it's unprofessional to visit a buyer in person. Amazon is not eBay.
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