Amazon has acquired a small startup company INLT in a bid to make its seller experience flawless. According to Reuters, the deal’s value is unknown. INLT’s website confirms the acquisition. It states, “INLT is now an Amazon company – We have been acquired by Amazon.”
Amazon acquires INLT
INLT provides cloud computing platforms to sellers to import goods in the US. Its website says, “INLT is a licensed customs broker with the ability to file entries anywhere in the United States.”
As per media reports, in April 2018, INLT announced the launch of its web-based application on final approval from the US government. The company raised about $1 billion in 2017.
As per the Reuters report, an Amazon spokeswoman said, “INLT is a smart, nimble team that is helping companies simplify and lower the cost of importing goods into the U.S. We’re excited to work with them to develop the next generation of solutions for their customers and Amazon selling partners.”
INLT: Linking the supply chain
INLT’s web platform connects importers to freight forwarders who can further connect to their agents globally. The platform allows for goods classification, documentation, and submissions, reducing the time and money involved in cross-border transactions.
INLT cofounder and CEO Chris Reynolds said last year, “Our role is to be the glue in the supply chain, from a communication and technology perspective, as well as a compliance one. If you import, we will save you money and make you more compliant. The same is true if you are a small or mid-size freight forwarder.”
Amazon focuses on seller support
Amazon’s acquisition of INLT will smooth the import process for Amazon sellers. This service will be in addition to the other services the company provides. Amazon provides services such as shipping, fulfillment, and global marketplace access to its sellers. The company also helps sellers offer special promotions and deals.
Amazon has announced the Amazon Small Business Awards, for which sellers have to submit nominations before October 6. They will be evaluated on their stories, customer focus, and products. So, these awards inspire sellers to perform better and offer the right product collection to customers.
Amazon stock falls
Despite Amazon’s robust growth trajectory, the stock has been facing turbulence this week. It fell 2.9% in the first two days of the week. Yesterday, its stock fell 2.4%. The news of its INLT acquisition was also reported yesterday. Amazon stock also fell 0.5% on September 23 as Morgan Stanley cut its target price on the stock.
Morgan Stanley expects Amazon’s profits to come under pressure due to its high one-day shipping costs. However, it maintains an “overweight” rating on the company for its positive outlook. To learn more, read Amazon Stock Down as Morgan Stanley Cuts Price Target.
Now, all eyes are on Amazon’s hardware event scheduled for September 25. Amazon might launch its much-awaited Echo Smart speakers at the event. The event could mostly focus on Alexa and Echo. To learn more, read The Amazon Hardware Event: Will Its Stock Rebound?
So far this month, Amazon stock is down 2.0% due to macro concerns, news of an FTC probe, and allegations of search result tampering. Its order for electric trucks from Rivian, its carbon-neutral stance, and its optimism about the upcoming Great Indian Festival are offsetting these headwinds.
Amazon’s peers have put up mixed performances. While Facebook (FB) and Microsoft (MSFT) have fallen 2.4% and 0.3%, respectively, Apple (AAPL) and Alphabet (GOOGL) have risen 4.3% and 2.3%, respectively, in the month.
Tech stocks are seeing the negative effects of increasing uncertainty over US-China trade relations. Increasing antitrust investigations against these companies are also hitting their stocks. Meanwhile, Apple stock has rebounded after its announcement of the launch of new iPhones and streaming service Apple TV+.
Now, investors will be looking forward to tech stocks’ upcoming earnings. In the second quarter, Facebook accelerated its revenue growth. Apple’s and Alphabet’s latest earnings were also better than expected in the quarter. Facebook, Apple, and Alphabet stocks rose after their earnings releases.