Amazon unveils logistics services revenues for first time
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Amazon has taken the unprecedented step of reporting its logistics revenues in quarterly earnings for the first time, underscoring the growing importance of the services it provides to third-party sellers.
The Seattle-based company revealed that these services accounted for $6.438bn in sales in the quarter, which is more than one in six dollars of total revenues. Logistics services were the fastest-growing part of Amazon’s retail business during the quarter, growing 36 per cent from a year earlier on a currency adjusted basis.
Amazon provides a range of services known as “Fulfillment by Amazon” for sellers who sell on its website, such as storing items in warehouses and shipping these items out when they are ordered. The fees charged for these services range from $2 for a small package, to more than $100 for a heavy and oversized package.
The company had previously reported the revenue from these services, which it calls “third party seller services”, only in its annual reports