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Amazon's digital freight broker platform goes live – FreightWaves



As shown in this table, Amazon quotes rates for shippers under just DAT's broker-to-carrier spot rates. In other words, Amazon Freight is in its present form a free, marginal brokerage.

Monetization comes later, but this is the digital freight broker process model at Georgia overdrive massive capital utilized to quickly scale a network on thin or negative margins and take part. There is no one to tell how big Amazon wants this business to grow, but at a certain point, prices will crawl as Amazon monitors the brokering business to fund further innovation.

That day may be a little away. In the first quarter of 201

9, Amazon spent DKK 7.3bn Dollars on transport as it clumps with sorting and delivery centers for the line item "freight costs." Ca. AMZN's "freight cost" is DKK 87.6 billion annually. Dollars a year and crucial, Bought transportation is not formally broken out on its P&L Amazon could grow its mediation in a $ 10 billion operation – effectively a shadow C.H. Robinson – Cost of sales, add it to shipping costs, and it may take years before investors start asking for margins.

We believe that building a third-party logistics network allows Amazon to blow out during the peak season. Having no margin in soft freight seasons and keeping trucks running, AMZN will have capacity closed and ready to move really staggering e-commerce volumes in November and December.


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