Amazon moat

The image below shows the average days it takes online retailers to deliver their orders versus Amazon. The gap between Amazon and the rest is just incredible. It is a true testament to the logistics juggernaut that Jeff Bezos and his team have built over the years.

We often talk about quality businesses having large competitive moats. The ability to deliver 4 days faster on average than your competitors is a wide moat, filled with crocodiles and piranhas. It will take potential competitors a lot of investment in infrastructure and skills to close that gap.

Most of Amazon's profits come from its cloud services and advertising. I am looking forward to the day when the online retail segment starts printing cash. I predict that time is not far away.