Amazon's inventory value has ballooned over the last year compared to some of its retail competitors, increasing 25% up to nearly $18.6 billion in its latest quarterly report from more than $14.8 billion during the same period a year ago, according to a review by Supply Chain Dive.
The increase in inventory is a result of Amazon's plan to roll out next-day delivery, according to Moody's retail analyst Charles O'Shea. "In order to do next day delivery, you've got to have the stuff in the system," O'Shea said in an interview with Supply Chain Dive. "So you've got to buy more because you don't know how much you need.". . . more