The company’s listed “transportation and logistics services” among its competitors in an earnings report for the first time last week. Amazon launched its own shipping option for merchants in the first quarter of 2018, and by November its pricing was well below that of UPS and FedEx. (CNBC)
Talking point: The company has said its expanding into logistics to ensure there’s enough capacity to move all the merchandise sold on its site. Controlling shipping is also good for the bottom line—it costs the company $27 billion in 2018, a 23 per cent increase from the previous year. It’s now possible to buy an Amazon-branded product on the Amazon platform that crosses the ocean in an Amazon shipping container or Amazon cargo jet and delivered by an Amazon-controlled truck. By integrating the entire retail chain, the company keeps an ever-larger percentage of sales.