Amazon Surges to Record High on Global E-Commerce Growth

From Bloomberg:

Amazon.com Inc., the world’s largest online retailer, surged to a record after Morgan Stanley said the company’s network of distribution centers will help it win share in an expanding global e-commerce market.

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Amazon is investing across the company to boost the volume of products sold on its site, adding features to its Kindle line of e-readers and tablets and beefing up its inventory and shipping network. The efforts may help Amazon gain share in a worldwide e-commerce market that Scott Devitt, an analyst a Morgan Stanley, estimated will reach $1 trillion by 2016, up from $512 billion last year, By then, Amazon’s share will be 23.5 percent, pushing net sales to $166 billion, he predicted.

“Amazon.com’s fulfillment network is an under appreciated, strategic asset.” Devitt wrote in the Jan. 6 report. He had previously projected 2016 sales of $145 billion and a 20.6 percent market share.

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Outside sellers, which accounted for 41 percent of units sold on the site in the quarter, are helping to drive warehouse expansion. The third party vendors pay to ship merchandise from Amazon’s warehouses, leaving Amazon with 100 percent profit on its commission from the sales.

Link to the rest at Bloomberg

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