Amazon ‘s (AMZN) soon-to-be widely available Buy with Prime service, which allows Prime members to use their Amazon accounts to shop with other online merchants, could be a profitable revenue channel for the e-commerce giant. However, the Club holding’s stock is still expensive, a high multiple compared to the broader stock market. Amazon on Tuesday said it’s making Buy with Prime, which launched as an invite-only program last year, available to all U.S. online retailers by the end of January. The service allows Amazon Prime members the ability to shop directly on other retailers’ websites , in turn helping those outlets to tap into Prime’s roughly 200 million members. The service also guarantees free, 2-day delivery. The company said it expects Buy with Prime to increase shopper conversion from browsing to buying by around 25%. Buy with Prime “allows merchants to build customer relationships and brand loyalty while offering conversion-driving benefits,” Amazon said in a statement. Shares of Amazon, which closed out 2022 down more than 50%, have rebounded somewhat at the start of this year. The stock was trading up roughly 2.7% midday Tuesday, at $89.69 a share. The news comes as Amazon faces slowing sales growth and gathering macroeconomic headwinds. At the same time, the company has been plagued by ballooning expenses and a bloated workforce, in part the result of over-hiring at the height of the Covid-19 pandemic when e-commerce demand was more robust. CEO Andy Jassy last week announced plans to cut 18,000 jobs at the company — a move that likely does not go far enough. But Buy With Prime should help Amazon make use of some of the excess warehouse capacity it invested in earlier in the pandemic and rein in associated costs, analysts said. “By reselling part of their logistics/distribution/fulfillment capacity, they are generating incremental revenue and better optimizing their cost structure,” Mark Mahaney, head of Evercore ISI’s internet research team, told CNBC in an email Tuesday. “I would also think that given AMZN’s logistics excellence that this would be a service received well by both merchants and consumers,” he added. Aaron Kessler, managing director for internet sector coverage at Raymond James, said in an email to CNBC Tuesday that Buy with Prime “will help on the margin improve utilization of [Amazon’s] fulfillment network.” The new service offers familiar Prime benefits to members like quick purchases and fast delivery. Moreover, Amazon will handle the lifecycle of purchases, including the processing of orders, packing of goods and delivery. The Club take Amazon’s Buy with Prime offering is positive for its potential to fill out excess capacity, allow merchants to maintain consumer relationships and provide another avenue to sell to customers not starting their search on the Amazon website. While this is a move in the right direction, it’s not enough to make Amazon stock look cheaper. And we’re not buying more shares on Tuesday’s news. We continue to look for Amazon to reduce headcount and better manage its expenses. At the same time, we remain cautious on the potential for further interest rate hikes from the Federal Reserve to continue to erode growth at the highly-priced e-commerce giant. (Jim Cramer's Charitable Trust គឺវែង AMZN ។ សូមមើលនៅទីនេះសម្រាប់បញ្ជីភាគហ៊ុនពេញលេញ។) ក្នុងនាមជាអ្នកជាវ CNBC Investing Club ជាមួយ Jim Cramer អ្នកនឹងទទួលបានការដាស់តឿនពាណិជ្ជកម្មមុនពេល Jim ធ្វើពាណិជ្ជកម្ម។ លោក Jim រង់ចាំ 45 នាទីបន្ទាប់ពីការផ្ញើការជូនដំណឹងពាណិជ្ជកម្មមុនពេលទិញឬលក់ភាគហ៊ុននៅក្នុងផលប័ត្រនៃការទុកចិត្តសប្បុរសធម៌របស់គាត់។ ប្រសិនបើលោក Jim បាននិយាយអំពីភាគហ៊ុននៅលើទូរទស្សន៍ CNBC គាត់រង់ចាំ 72 ម៉ោងបន្ទាប់ពីការចេញការជូនដំណឹងពាណិជ្ជកម្មមុនពេលប្រតិបត្តិពាណិជ្ជកម្ម។ ពត៌មានក្លឹបវិនិយោគខាងលើគឺស្ថិតក្រោមលក្ខខណ្ឌ និងលក្ខខណ្ឌរបស់យើង និងគោលការណ៍ឯកជនភាព រួមជាមួយការមិនទទួលខុសត្រូវរបស់យើង។ មិនមានកាតព្វកិច្ច ឬកាតព្វកិច្ចខាងសារពើពន្ធ ឬត្រូវបានបង្កើតឡើង ដោយផ្អែកលើការទទួលព័ត៌មានរបស់អ្នកដែលផ្តល់ឲ្យក្នុងការតភ្ជាប់ជាមួយក្លឹបវិនិយោគ។
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Sandy Huffaker | រ៉យទ័រ
Amazon‘s (AMZN) soon-to-be widely available Buy with Prime service, which allows Prime members to use their Amazon accounts to shop with other online merchants, could be a profitable revenue channel for the e-commerce giant. However, the Club holding’s stock is still expensive, a high multiple compared to the broader stock market.
Source: https://www.cnbc.com/2023/01/10/amazons-buy-with-prime-a-positive-step-but-stock-remains-overvalued-.html