Companies
Agosto 6, 2021 - < 1 min

Amazon: more and more logistics

The metamorphosis of the world's largest ecommerce company

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Logistics costs are a key and growing component in the expansion of e-commerce. The biggest example is Amazon, which has seen the weight of transportation and delivery costs go from representing less than 20% of its net sales in 2012 to more than 30% by 2020. There are several reasons behind this, such as the multiplication of its distribution network to gain market share and the incorporation of a large number of low-margin and 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' company is one of the top 10 Non-Vessel-Operating Common Carriers - entities that perform all liner services, but do not own or operate vessels - on the Asia-U.S. route and is considered a disruptive force in the shipping agent business on that route. Through its multichannel option, Amazon, in addition to transporting products sold through its platform, offers Chinese companies fullfilment services for sales made through channels other than Amazon.