Straight out of China. Amazon will become an ocean freight forwarder in China. This feels like a way to entice Middle Kingdom exports into the head FANG’s “Fulfillment by Amazon” pipeline back to US. And now for some random notes.
That link leads to the Federal Maritime Commission and click on that, find “Trade Name” on the pull down menu on the search engine and type in Amazon. Boom. “AMAZON CHINA, AMAZON.CN, AMAZON GLOBAL LOGISTICS CHINA” are the Trade Names for Beijing Courier Joyo Courier Service. Long story short Bezos will not be admiral of a 21st fleet necessarily. His eyes are pointed skyward after all.
http://www2.fmc.gov/oti/NVOCC.aspx
This below referenced blog, written by Flexport CEO Ryan Petersen, head of a freight forwarder, covered Amazon’s foray into the oceans.
https://www.flexport.com/blog/amazon-ocean-freight-forwarder/
Flexport CEO Petersen’s assessment: “Amazon’s ocean freight offering could be a huge hit for Chinese merchants. But I predict that Amazon will fail to win traction with U.S. brands. American companies will simply not be willing to turn over such sensitive supply chain data to a major competitor and channel partner.”
But this may not just be about China. It could be about this company. https://www.wish.com
http://recode.net/2015/12/28/meet-wish-the-3-billion-app-that-could-be-the-next-walmart/
Wish, a MOBILE platform, and Russian funded e-commerce unicorn (at 3.5B+ USD valuation based upon Yuri Milner’s $500M injection) which seeks to disrupt that which Amazon is already disrupting – Walmart. Petersen’s Flexport blog offers a nugget about a potential “WHY” behind Amazon’s maritime moves. To oversimplify it’s an “Empire Strikes Back” scenario, with Bezos’ Empire poised to crush mobile upstart Wish.
Regarding this mobile unicorn, some observations by Re/Code journalist Jason Del Ray: “The company has taken the direct-to-consumer fad to the extreme, connecting buyers directly to Chinese manufacturers who ship to customer’s doors from factories, cutting out middlemen and markups along the way. That helps explain the dirt cheap prices, from $7 sweatpants to $15 smartwatches, but also the long delivery times of two to three weeks.” And this could help explain Amazon’s big to get China more directly plugged into Amazon’s distribution channel.
Is this about Wish > Amazon > Walmart?
Avast ‘ye, arghhh.
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