Speculation is rife that Amazon is soon to establish itself as a global shipping and logistics expert, in a move coined internally as project ‘Dragon Boat’.
While this bold strategy has the potential to significantly increase margins and position Amazon as Chinese businesses’ gateway to the West, a considered and phased implementation is essential if the firm is to gain share of the cross-border e-commerce market from industry leader Alibaba.Leaked documents suggest that the wheels are already in motion, with Amazon having begun leasing planes as well as registering itself as an ocean freight booking business. In consolidating the supply chain to provide a holistic delivery solution, the firm will in effect create a network which controls the flow of goods from factories in China to consumer’s homes in the US and Europe.
While pitting itself in direct competition with the likes of FedEx and UPS, Amazon will also aim to facilitate a route to the international marketplace for smaller manufacturers ahead of Alibaba, the leading force in Chinese e-commerce.