Amazon (NASDAQ: AMZN) has launched a new service that enables third-party retailers to utilize its e-commerce delivery and supply chain network, expanding beyond just items sold on its platform. This initiative, announced recently, supports fast shipping for all online retailers in the U.S., and could significantly enhance Amazon’s revenue potential from logistics services.
Amazon’s logistics network includes over 100 aircraft, 80,000 trailers, and 24,000 freight containers. The company generated $743 billion in revenue over the last 12 months, with an operating margin of 12%. Analysts predict that this margin could increase to nearly 20% in the coming years with the expansion into third-party shipping services and growth in higher-margin segments like advertising and Amazon Web Services, which saw a 28% revenue increase year-over-year.
Currently, Amazon has a market cap of $2.9 trillion, and its stock price has been rising as it continues to optimize its delivery infrastructure aimed at boosting profits. Revenue growth is projected to sustain at roughly 10% annually over the next few years, which would position Amazon to reach a trillion dollars in sales.
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