Amazon (AMZN) has been expanding in terms of its products and its operations, and as a result it is widening its competitive advantages over rivals. Amazon has announced plans to open up a customer service facility in Kentucky. It will open next year and is expected to get at least 500 new jobs ready for the company. This will go alongside the shipping centers that Amazon already has in Kentucky.
Amazon is also looking to expand into new markets. The site is planning on selling fashions from a number of high-end retailers like Michael Kors and Luciano Barbera. This is believed to be a huge development that comes off of the heels of the company buying Zappos.com a few years ago. This encouraged Amazon to get into the high-end fashion business, which should boost gross margins, already at 24%, in the long-run.
This is a move that is being done as a means of challenging luxury retail stores from companies like Saks (SKS) as it wrestles for more market share. This could end up influencing Amazon’s profits in a positive manner, because these fashions will be more accessible. Rather than a competitor, Saks could be a likely sales partner as Amazon as the sales conduit.
The company continues to evolve thanks to how it continues to stick with the book sales that the company has been known for ever since the company first started out. The company derives $8 billion of its revenues from written materials.To continue reading, click here.