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Amazon.com, Inc. (NASDAQ:AMZN) is included among the 10 Best Blue Chip Stocks to Invest in According to Billionaires.
On May 4, Reuters reported that Amazon.com, Inc. (NASDAQ:AMZN) plans to let other businesses store and ship goods through its logistics network. The offering covers everything from raw materials to finished products. The move puts the company in more direct competition with United Parcel Service and FedEx Corporation.
The new service, called “Amazon Supply Chain Services,” will be available to companies in sectors such as retail, healthcare, and manufacturing. It gives them access to a network that spans the ocean, road, rail, and air. The company is aiming to strengthen its position in the US logistics market. That could increase pressure on pricing and delivery speeds for established players.
Amazon already operates a fleet of more than 100 cargo planes, trailing only FedEx and UPS. It also runs a large system of warehouses and sorting hubs. The expansion opens another growth path for its e-commerce segment. It builds on existing services that support thousands of third-party sellers worldwide. Businesses using the service can tap into two-to-five-day delivery timelines. They can also use tools like inventory forecasting, along with other distribution and fulfillment capabilities.
The push targets the business-to-business shipping market, which tends to offer higher margins. These shipments are often more predictable and less costly to handle than consumer deliveries.
Amazon.com, Inc. (NASDAQ:AMZN) offers a wide range of products and services. Its stores include items it purchases for resale as well as goods sold by third-party sellers. The company operates through three segments: North America, International, and Amazon Web Services.
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