heroine AMZN is making every effort to grow its e-commerce business globally by focusing on expanding to more countries and strengthening its distribution network.
This is evident from its latest announcement about its first sort center in Australia, which has immense potential for e-commerce.
The company is set to open a sort center this year in the Goodman Group’s new Amaru Business Park in Craigieburn, Melbourne.
The 15,600 sq ft plant will focus on accelerating the pace of deliveries in Victoria and across the country.
The company promises to create 200 local jobs, from entry-level positions to specialist roles, with competitive pay and a safe work environment.
We believe Amazon’s customer reach in Australia will grow with its latest move, which will enhance the shopping experience through accelerated delivery.
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Sort centers sort pre-selected and packaged customer orders based on destination, and consolidate and ship to last-mile sites for delivery.
Therefore, the expansion of the Sort Center network is in line with the company’s last-mile delivery commitment.
In this fast-paced world, it is important for the e-commerce giant to strengthen the delivery system.
The latest move augurs well for the company’s hugely rising expenditure on building and modernizing fulfillment centres, sort centers and distribution stations to cut shipping costs and accelerate delivery. It is contributing well to the performance of its online retail business – the backbone of its overall business.
The company’s aggressive retail initiatives and growth strategies are likely to continue the momentum.
The world’s largest online retailer is strengthening its presence around the world.
In our view, Amazon must maintain its US market share while expanding globally to maintain its leading position. For this, the company needs to continue investing more in its distribution network, which helps online retailers store and ship products, and handle returns quickly.
Apart from Australia, Amazon is making concerted efforts to grow its e-commerce business in India. It is in the race to expand its fulfillment network in the country.
In this context, the recent launch of two fulfillment centers in Maharashtra, India is noteworthy. This will boost the company’s distribution power in the country, which in turn, will help in providing a better shopping experience to the customers.
Jacks Rank and Stocks to Consider
Currently, Amazon Jax holds the rank #3 (hold).
There are some better ranked stocks in the retail-wholesale sector kroger company KR, aim TGT and Costco Wholesale cost. While Kroger currently sports Jax’s rank #1 (strong buy), Target and Costco take Jax’s rank #2 (buy). you can see Full list of today’s Jax #1 ranked stocks here.
Kroger has gained 58.4% on a year-over-year basis. The long-term earnings growth rate for KR Stock is currently estimated at 9.88%.
The target has increased by 18.3 per cent on a year-on-year basis. The long-term earnings growth rate for TGT stock is currently estimated at 16.52%.
Costco has grown 65.5% on a year-over-year basis. The long-term earnings growth rate for COST Stock is currently estimated at 8.89%.
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