Amazon’s Next Business Is Hiding Inside Its Delivery Network (NASDAQ:AMZN) | Seeking Alpha
HomeStock IdeasLong IdeasConsumerSummaryAmazon is launching Amazon Supply Chain Services, leveraging its logistics infrastructure for external customers beyond its core e-commerce, AWS, and advertising. . .
HomeStock IdeasLong IdeasConsumerSummaryAmazon is launching Amazon Supply Chain Services, leveraging its logistics infrastructure for external customers beyond its core e-commerce, AWS, and advertising businesses. ASCS targets residential parcel delivery, offering lower rates and simpler pricing to attract third-party volume, improving network utilization and operational efficiency. Base and strong case scenarios suggest ASCS could contribute 2–5% of annualized operating income, with the primary benefit being cost savings in Amazon’s retail logistics. I rate AMZN a Buy, as ASCS enhances logistics economics and offers upside potential beyond AWS and AI, with further value possible from freight and international expansion. hapabapa/iStock Editorial via Getty ImagesAmazon (AMZN) traditionally has three businesses: e-commerce, Amazon Web Services, and advertising. Soon, a fourth business is going to be added to this. This is ASCS, or Amazon Supply Chain Services. In May, Amazon opened141 FollowersAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure:Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.