Is Amazon Finally Fixing Its Inventory Problem?
Strong consumer demand during last week's big shopping weekend could be a huge relief for Amazon (NASDAQ: AMZN) investors.
The online retail giant saw its inventory levels explode last year after it expanded its fulfillment network and stocked its warehouses full of KitchenAid mixers, iPads, and all the trinkets people love to buy on Amazon.com. But as online sales growth slowed in 2022, more and more items were being left in Amazon's warehouses for longer. That's led to a drop in operating efficiency, dragging down profits.
But this year's Cyber Five -- the period from Thanksgiving through the following Monday -- saw strong demand, and could help right-size Amazon's inventories for 2023.
Source Fool.com
