The news: Amazon officially rolled out its fully managed, end-to-end Supply Chain by Amazon solution to sellers. The service allows merchants to take advantage of the retailer’s extensive and advanced logistics, warehousing, distribution, fulfillment, and transportation networks to get products to consumers faster and more efficiently.
Zoom out: Supply Chain by Amazon fulfills several objectives for the retailer.
First, it’s an opportunity to get more sellers to pay for its third-party services—which as of Q2 were Amazon’s second largest segment by sales, behind only its online stores business, and pulled in nearly three times the revenues of its advertising unit.