Companies
Agosto 6, 2021 - < 1 min

Amazon: More and More Logistics

The Transformation of the World's Largest E-Commerce Company

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Logistics costs are a key and growing component of e-commerce expansion. The prime example is Amazon, which has seen the burden of shipping and delivery costs rise from less than 20% of its net sales in 2012 to more than 30% in 2020. There are several reasons behind this, such as the expansion of its distribution network to gain market share and the addition of a large number of low-margin, bulky products, such as appliances and furniture. With this evolution, Amazon is becoming a competitor in the logistics business. With some 100,000 containers under contract, Jeff Bezos’s company is one of the top 10 Non-Vessel-Operating Common Carriers—entities that provide all liner shipping services without owning or operating ships—on the route between Asia and the United States, and is considered a disruptive force in the shipping agency business on that route. Through its multichannel option, Amazon not only transports products sold through its platform but also offers Chinese companies fulfillment services for sales made through channels other than Amazon.