Amazon has set sail. Although Amazon doesn’t own any crews or ships, it has started shipping products from merchants in China to the United States by ocean freighters. Amazon has started acting as a logistics operator organizing ocean carriers for the owners.
And so far things are off to great start for Amazon. It organized 150 carriers of imported products from China. These transactions date as far back as October.
Initially, Amazon stated that it planned to increase its air transport for its products. The company followed through on this by an agreement with Boeing. The agreement allowed Amazon to lease Boeing cargo jets for Amazon Prime Air. Amazon also constructed services that allow for faster deliveries in cities. Prime Now, in some locations, offers same day delivery with shipping as fast as two hours.
Amazon already dominates the online retail world. By expanding its logistics business, the company gains a tighter rein on costs. This is possible now that it is able to transfer products from the ships to warehouses and the other way around.
