3 Reasons Amazon Is a Buy – The Motley Fool

3 Reasons Amazon Is a Buy – The Motley Fool

Amazon (NASDAQ:AMZN) has shined during the coronavirus pandemic as Americans have been forced to place added orders for delivery to find the supplies needed to spend an extended period at home. The retailer has had its stumbles — it has struggled to keep toilet paper, hand sanitizer, and a few other things in stock, for example. For the most part, however, the online leader has demonstrated its strength.

That’s good news for shareholders — and not just during the current crisis, but for the long term. Amazon has shown that it has some clear strengths that it has built over a long period, and the coronavirus pandemic has benefited it in a very clear way.

An Amazon warehouse worker

Amazon will come out of this pandemic stronger. Image source: Amazon.

1. Supply chain

People have begun to expect two-day or faster delivery in nearly all cases. That’s why it has been somewhat surprising when Amazon has struggled to get some orders out as fast as it normally does.

The reality is that nobody could have predicted this scenario and planned for the run on toilet paper, cleaning supplies, and basic food items. Under the circumstances, Amazon has performed incredibly well. And while it listed long shipping times for certain orders, many were sent well ahead of planned dates.

Amazon keeps adding capacity, and it’s learning lessons from this crisis that will help it during its normal operations.

2. Customer acquisition

Some people who used Amazon