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Amazon's (AMZN) New Facility to Expand Reach in Australia
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Amazon (AMZN - Free Report) is making every effort to bolster its e-commerce business globally by focusing on expanding to more countries and strengthening its distribution network.
This is evident from its latest announcement regarding its first sort center in Australia, which holds immense e-commerce prospects.
The company is set to open a sort center in Craigieburn, Melbourne, at Goodman Group’s new Amaroo Business Park this year.
The 15,600-sq-ft facility will be focused on fastening the delivery speed in Victoria and around 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 that Amazon’s customer reach in Australia will expand on its latest move, which will enhance the shopping experience via quick delivery.
The sort centers sort the already-picked-and-packed customer orders by destination, and consolidate and ship to last-mile sites for delivery.
Hence, expanding the sort center network is in sync with the company’s last-mile delivery commitment.
Strengthening the delivery system remains crucial for the e-commerce giant in this fast-paced world.
The latest move bodes well for the company’s heavily rising spending to build and modernize fulfillment centers, sort centers and delivery stations primarily to cut shipping costs and speed up delivery. This has been contributing well to the performance of its online retail business — the backbone of its overall business.
The momentum is likely to continue to be driven by the company’s aggressive retail initiatives and growth strategies.
Wrapping Up
The world’s largest online retailer has been strengthening its presence worldwide.
In our view, Amazon must maintain its U.S. market share, while expanding globally to retain its leading position. To this end, 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 has been making concerted efforts to bolster its e-commerce business in India. It is on its fulfillment network expansion spree in the country.
In this context, the recent launches of two fulfillment centers in Maharashtra, India, remain noteworthy. This will boost the company’s distribution strength in the country, which, in turn, will aid it in delivering an enhanced shopping experience to customers.
Image: Bigstock
Amazon's (AMZN) New Facility to Expand Reach in Australia
Amazon (AMZN - Free Report) is making every effort to bolster its e-commerce business globally by focusing on expanding to more countries and strengthening its distribution network.
This is evident from its latest announcement regarding its first sort center in Australia, which holds immense e-commerce prospects.
The company is set to open a sort center in Craigieburn, Melbourne, at Goodman Group’s new Amaroo Business Park this year.
The 15,600-sq-ft facility will be focused on fastening the delivery speed in Victoria and around 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 that Amazon’s customer reach in Australia will expand on its latest move, which will enhance the shopping experience via quick delivery.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon to Gain
The sort centers sort the already-picked-and-packed customer orders by destination, and consolidate and ship to last-mile sites for delivery.
Hence, expanding the sort center network is in sync with the company’s last-mile delivery commitment.
Strengthening the delivery system remains crucial for the e-commerce giant in this fast-paced world.
The latest move bodes well for the company’s heavily rising spending to build and modernize fulfillment centers, sort centers and delivery stations primarily to cut shipping costs and speed up delivery. This has been contributing well to the performance of its online retail business — the backbone of its overall business.
The momentum is likely to continue to be driven by the company’s aggressive retail initiatives and growth strategies.
Wrapping Up
The world’s largest online retailer has been strengthening its presence worldwide.
In our view, Amazon must maintain its U.S. market share, while expanding globally to retain its leading position. To this end, 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 has been making concerted efforts to bolster its e-commerce business in India. It is on its fulfillment network expansion spree in the country.
In this context, the recent launches of two fulfillment centers in Maharashtra, India, remain noteworthy. This will boost the company’s distribution strength in the country, which, in turn, will aid it in delivering an enhanced shopping experience to customers.
Zacks Rank & Stock to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are The Kroger Co. (KR - Free Report) , Target (TGT - Free Report) and Costco Wholesale (COST - Free Report) . While Kroger currently sports a Zacks Rank #1 (Strong Buy), Target and Costco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger has gained 58.4% on a year-to-date basis. The long-term earnings growth rate for the KR stock is currently projected at 9.88%.
Target has gained 18.3% on a year-to-date basis. The long-term earnings growth rate for the TGT stock is currently projected at 16.52%.
Costco has gained 65.5% on a year-to-date basis. The long-term earnings growth rate for the COST stock is currently projected at 8.89%.