Amazon’s Logistics investment – Has it paid off?
International e-delivery company ParcelHero comments on Amazons quarterly profit report, stating that the “Jam tomorrow” transport plans have paid off.
Amazon have recently announced a healthy return of $1.07 per share in its most recent report for Q1. ParcelHero have attributed this profit growth to its phenomenal investment into revolutionising its logistics centre.
Indeed, David Jinks, ParcelHero’s Head of Public Relations stated that:
‘For Amazon’s long-suffering investors, it was always been the promise of “jam tomorrow” that kept them holding on, through the considerable expense of building a radical new supply chain. At the end of 2014 Amazon had earned a cumulative net profit of just $1.9 billion in its entire twenty year history as a public company, despite more than $400 billion in sales during that time. That’s because it ploughed the money back into developing its service. Fortunately, many investors kept faith and that’s paying off for them in Amazon’s recent results.’
Jinks continues to state that:
‘This time last year we issued a report entitled “Amazon’s Prime Ambition” revealing the extent of Amazon’s investment in its new logistics business. We explained why Amazon’s revolutionary plan to take charge of its own deliveries would pay off for investors sooner rather than later. That prediction has been proved right. With Amazon’s logistics arm coming into in place, its shareholders are enjoying their jam today; in fact even within the hour if they live within one of the many cities Amazon Prime Now and Pantry serves’.
It appears as though Amazon’s decision to take control of its own deliveries, and its Amazon Prime feature have contributed greatly to amazon’s success, and have also pathed the way towards a future of self-delivery management services for larger retail and ecommerce companies.
Jinks concludes ‘We said last year Amazon stands to save $3bn globally and £122 million in the UK alone by cutting down on the use of external delivery companies. We believe Amazon’s ultimate goal is to become the conduit through which all aspects of e-commerce and logistics flow. By revolutionising its global supply chain and cutting out the middleman it’s on its way.’