business news in context, analysis with attitude

The Seattle Times reports this morning that more than two billion items were shipped by the Fulfillment by Amazon program during 2016, essentially doubling the number of items sold in 2015 by third parties on Amazon and then shipped by the e-tailer.

Additionally, the story says, "Amazon said that there were 70 percent more sellers using Fulfillment by Amazon (FBA), which not only pads Amazon’s revenues but also gives it a tighter grip on customer satisfaction."

The Times also notes that Amazon said "third-party sellers received orders for more than 28 million items on Cyber Monday. That’s up from 23 million items in 2015."
KC's View:
This is an enormous advantage for Amazon, both in terms of its ecosystem expansion and its ability to generate revenue. And I would imagine that it will try to be even more essential to these companies' businesses as it expands into the shipping lanes, supplementing/replacing services offered by entities such as FedEx and UPS.