Here's Why This 1 Change at Amazon Could Supercharge Earnings
In recent years, you could pretty much count on Amazon (NASDAQ: AMZN) to deliver earnings growth. But rising inflation and general economic woes hurt the e-commerce giant last year and even drove it to its first annual loss in nearly a decade. The good news is that things are starting to look brighter for Amazon.
Its cost-cutting and growth efforts are bearing fruit, and the company reported gains in operating income and operating cash flow in the second quarter. Even more importantly, Amazon has made one big change that should eventually lower costs, encourage customers to spend more, and may even supercharge earnings. I'll give you a hint: It has to do with the way Amazon delivers packages from its warehouses to your door.
First, a bit of background on something that impacts any of us who have ever shopped on Amazon: the company's fulfillment network. During the earliest days of the pandemic, the e-commerce powerhouse struggled to keep up with increasing demand -- forced to stay home, people ordered more and more online. So, the company decided to expand its network and ended up doubling it in about two years.
Source Fool.com
