Amazon.com's (AMZN) BigCommerce (BIGC) Partnership Could Add $15B/Year in Fulfillment - BofA Securities

BofA Securities analyst Justin Post reiterated a Buy rating and $4,360.00 price target on Amazon.com (NASDAQ: AMZN) after BigCommerce (NASDAQ: BIGC), the eCommerce SaaS platform, announced a new integration with Amazon Multi-Channel Fulfillment (MCF) that will allow its US merchants to fulfill orders using Amazon’s fulfillment services, whether or not the merchant sells on Amazon. Merchants will be able to offer customers improved shipping services, including One-day, 2-day, and 3-5 day delivery, improved delivery timing accuracy/tracking, and automatic inventory placement that puts products in warehouses closer to customers. Amazon associates will pick, pack, and ship the items.

The analyst believes this could be a $15bn near-term opportunity for Amazon, stating "We see the BigCommerce announcement as a clear indication that Amazon is working toward a building a logistics services business, a potential positive for the stock. We have previously detailed a $15bn revenue opportunity by 2025 for Ship with Amazon (see our report: Logistics as a fourth-leg of its services stool). Capturing 15% of non-Amazon eCommerce Shipping market would translate to an incremental 1.7bn packages, or a 24% increase in existing delivery scale."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $3731.41 yesterday.

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