Amazon plans on selling consumer packaged goods online, going head-to-head with big-box retailers. What does that mean for the stock?
Never mind its potential army of drones: Amazon is taking on a bigger battle. The e-commerce behemoth wants to start selling consumer packaged goods in bulk.
Published reports say Amazon is expected to launch a new line of business in 2014 called Pantry. Amazon Prime customers will be able to order consumer packaged goods (CPGs) like ketchup or toilet paper, have it packed into set-sized boxes, and shipped to their homes.
Amazon will face huge competitors like Costco, Wal-Mart's Sam's Club, and BJ's Wholesale Club. Though Amazon isn't about to open a big-box store anytime soon, all three of those retailers already offer online sales.
Meanwhile, analysts at ISI upgraded Amazon to a "strong buy", saying, "We are upgrading Amazon to Strong Buy as we believe North American revenues can growRead More »from This will be bigger for Amazon than drones