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By looking at the recent 12% growth in online stores, it will be wrong to assume that Amazon is losing its attraction among customers. If the company wanted to show much higher growth rate, it would have done so. It looks like that the management is finding an ideal point of growth in online sales which will give better margins and also continue to increase the value proposition of Prime membership. The massive increase in shipping and fulfillment costs has often been quoted as the biggest headwind for the company. Many bears have also pointed to http://thclotheshopstcuq.tek-blogs.com this metric as a proof that the company can never deliver sustainably high margins and EPS. It is true that the shipping and fulfillment costs for Amazon have rocketed in the past few years, but there is a huge caveat to it. Fig: Shipping and fulfillment costs as a percentage of net sales. Source: Statista The above graph is very important because it shows that since 2009 the company is putting greater resources http://cheapxchangesque.realscienceblogs.com in delivering goods to customers' doors. In the recent fiscal http://shop3tk.webteksites.com year, this cost added up to a staggering $46.9 billion and was equal to 26% of net sales.
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