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Amazon's inventory value up 25% as it begins next day shipping

September 10, 2019 / Matt Leonard
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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. Other large retailers, including Walmart, Kroger and Home Depot, have also seen inventory increas in their most recent earnings, but not to the same level. Amazon CFO Brian Olsavsky mentioned "new costs" on the company's Q2 earnings call that were the result of "expanding inventory, getting it closer to the customer." 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.