What “Amazon Supply Chain Services” Tells Us About What Amazon Is

2 days ago

Amazon Supply Chain Services (ASCS) extends its logistics network to external companies, reflecting Amazon's pattern of monetizing internal infrastructure, similar to Marketplace and AWS.
The cost advantage stems from scale and the square root law of pooling, where increased volume lowers per-unit costs, creating a structural gap competitors like UPS cannot easily close.
ASCS transforms cost centers into profit centers by leveraging surplus capacity, with potential regulatory and trust challenges but significant growth prospects in the logistics market.

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