This Change at Amazon May Sound Ho-Hum. But It Actually Could Be Revolutionary for the Company and the Stock.
Amazon (NASDAQ: AMZN) stirs up a lot of excitement when it talks about artificial intelligence, investment in its cloud computing business, or the results of its Prime Day sales events. These are elements known to boost growth at the trillion-dollar company -- and eventually share performance too.
But one much-less-exciting element is on track to become another top growth driver for Amazon. And that's a change to the nuts and bolts of Amazon's e-commerce business, the manner of shepherding items from warehouses to your doorstep. The e-commerce giant has switched its fulfillment model to a regional one from a national one, and results so far have surpassed Amazon's expectations. In fact, the move could be revolutionary for the company over time. Let's find out more.
First a bit of background. Amazon's earnings soared during the early days of the pandemic as shoppers favored buying online, and to keep up with this demand, the company expanded its fulfillment network. In fact, it doubled the network in just two years.
Source Fool.com
