Drones May Offer Potential Solution To Amazon's Rising Shipping Expenses for more go https://www.blogger.com/blogger.g?blogID=126129077493420670#editor/target=post;postID=8528079530158370104
Summary
Amazon's shipping expenses have been rising, and with the company's quest for faster delivery, this variable cost is likely to rise even further.
Online shopping's rising popularity has resulted in a massive proliferation of packages being shipped to online shoppers.
This adds stress to an already congested and ageing transport network. Drones could potentially introduce a solution in the longer term.
Early cost estimates look positive, which suggests drones might have the potential to positively impact shipping expenses - the Achilles' heel of online retailers.
Please take note that this is only one aspect in weighing the attractiveness or non-attractiveness of Amazon (NASDAQ:AMZN) as an investment, and should not be used independent of other factors. (Other factors include valuation, which is not addressed in this article. This piece merely explores the business side of Amazon's core business of online retailing.)
Amazon accounted for nearly 40% of online spending during the holiday season from November 1st to December 6th, according to research conducted by Slice Intelligence. The company's share increased by 140 basis points this year compared to last year, when the online retailer captured nearly 38% of American's online spend during the holiday season. Amazon's market share islarger than the web sales of the next 21 retailers combined, including Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Best Buy Co. (NYSE:BBY), Macy's Inc. (NYSE:M), Home Depot Inc. (NYSE:HD), Nordstrom Inc. (NYSE:JWN) and Costco Wholesale Corp. (NASDAQ:COST).
(Source: Bloomberg)
Its vast selection and superior customer service has catapulted the company to become the undisputed leader in e-c
