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Could Amazon's Excess Warehouse Capacity Be a Blessing in Disguise?

TheMotleyFool

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Could Amazon's Excess Warehouse Capacity Be a Blessing in Disguise?: https://g.foolcdn.com/editorial/images/716005/getty-images-driving-forklift-in-warehouse.jpeg

Amazon (NASDAQ: AMZN) doubled its already-massive fulfillment center footprint in two years, and now it's paying the price.

Amazon will lay off 18,000 workers amid a slowdown in online retail growth, and many of its warehouses are sitting under-utilized. Amazon's using less than two-thirds of its total capacity, according to data from consulting firm MWPVL International. That's down from 85% in 2019.

Analysts say it could take years for Amazon to recover from overbuilding, as unused warehouses weigh on cash flow. But challenges breed innovation, and it could be a catalyst for Amazon to build new services using its excess capacity.

Source Fool.com

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