We began studying Amazon in 2014 and our research is based on 50+ hours of interviews with Former Executives focused on:

• How a unit flows through AMZN’s network from supplier, inbound, through the network to the customer 
• Structural differences in AMZN fulfillment network design vs 3P carriers and how this impacts variable cost per shipment 
• A seller’s perspective of the economics selling via FBA and FBM 
• How to decouple the AMZN Retail P&L from consolidated numbers and estimate underlying retail FCF
• Endemic and non-endemic advertising across Amazon and the long-run opportunity 

How a parcel flows through Amazon’s Network 

In Q4 22, Jassy reported that AMZN had “built out a transportation network roughly the size of UPS in a couple of years'’. A core angle of our AMZN research has been to understand the structural differences in AMZN’s delivery network design and performance relative to incumbent third-party carriers.