Comment / ANALYSIS: Enormous logistics costs the logic for Amazon to develop shipping services

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Amazon’s respective fortunes in shipping and logistics and web services (AWS) are intimately tied. For obvious reasons, given our focus here at The Loadstar, I’ll concentrate on the former at a time when AWS in on a roll.

In the trailing 12 months ended 31 December, Amazon’s shipping cost base – at 86% of total fulfilment costs (TFC), they rose significantly as a percentage of TFC year-on-year – was $5bn higher than shipping revenues, with 10-year trends shown in the chart ...