A new industry report by Amazon entitled Amazon’s Prime Ambition reveals the extent of the company’s investment and planning for a revolution in the supply chain, developing its own logistics operations and harnessing the potential of the “Internet of Things”.

Amazon’s recently announced US$57 million quarterly loss is the price Amazon, and its shareholders, are willing to pay to transform the market in the future.

Amazon intends to use its growing logistics expertise to transform the customer experience in years to come. For example, Amazon has already patented the use of 3D printers to produce items en route to customers, has introduced the “Internet of Things” so that a fridge or coffee maker can send an automatic message to Amazon when running low, and is, right now, trialling deliveries directly to customers’ cars.

Amazon’s ultimate aim for its new distribution arm, Amazon Logistics, is for it to become a logistics company in its own right, competing with companies such as UPS and FedEx.

The move will save Amazon $3 billion a year globally. Amazon currently spends at least nine per cent of its sales income on transport costs and this would more than offset the recent $57 million quarterly net loss, but its ultimate delivery aims will boost its income far more significantly in the future.

The reports shows that there is a possibility that in the long term Amazon’s logistics plans will see everything being delivered through a portal called Amazon, which spans the web platform from which customers order their items right through to the actual production of those items while on their way to customers.