Amazon.com Inc. (AMZN – Free Report) is certainly one of the most customer-centric companies. It is therefore determined to automate its warehouses, improve its delivery system and offer better services to its customers.

Amazon has signed a seven-year commercial contract with the French robotics company for Balyo warehouses.

Under the terms of the agreement, Balyo will provide the retail giant with standalone forklift trucks. In exchange for the purchase of Balyo products, Amazon will receive stock warrants representing up to 29% of Balyo's capital, based on its purchase of Balyo-compatible products.

Balyo, whose navigation system turns forklift trucks into autonomous vehicles, is a technological leader in the design of robotic solutions. The company expects a turnover of 23.3 million euros in 2018, up 40% from the previous year.

The expansion of robotics continues

The largest online retailer in the world is striving to develop and automate its distribution centers around the world. These innovative technologies reduce the time needed to sort and package products, strengthening delivery services the same day or the next.

The acquisition of Kiva Systems by Amazon in 2012 may have been a more transformative step towards warehouse automation. The agreement provided Amazon with an army of robots capable of scanning its warehouses, analyzing inventory, segregating items, and responding to shipping demands at rocket speed.

Since the acquisition, Amazon has entered into partnerships between companies and universities to support innovation in its robotic systems. She now owns robots in her worldwide order processing centers, which is resuming her shipping activities more and more. Needless to say, Amazon depends a lot on robots to ensure on-time delivery, customer convenience and cost savings.

The latest investment in Balyo is part of the company's strategy of automating its warehouses to reduce costs and speed up deliveries.

Bottom line

Amazon is gaining popularity in online retail thanks to its robust distribution system. In addition, the strength of distribution, the expanding sales base and product offerings reinforce its dominant position in this particular space.

The rapid expansion of Amazon's delivery services the same day, same day, and two hours was critical to its success. In addition, the strengthening of grocery services by Whole Foods Store is a major asset.

The e-commerce giant's growing interest in automating its distribution centers is growing and its recent investments in robotics companies should continue to bear fruit. There is no doubt that Amazon's efforts have prompted other retailers to think the same way about staying abreast of the race. Distribution giants such as Target Corporation (TGT – Free Report) and Lowe 's Companies, Inc. (LOW – Free Report) are also testing their robots to track inventory in stores.

According to a research report, the logistics automation market is expected to grow from $ 46.22 billion in 2018 to $ 80.64 billion in 2023, with a CAGR of 11.8%. Market growth can be attributed to the exponential growth of the e-commerce industry, to advances in robotics and the emergence of the IoT.

As a result, a growing number of retailers are testing robots, and the idea is not only to manage inventory in-store more efficiently, but also to check if they have a lower price than the labor force.

Zacks Rank & A Stock to Consider

Amazon currently has a Zacks Rank # 3 (Hold). Groupon, Inc. (GRPN – Free Report) is a top ranked technology leader in the overall technology sector, holding the # 2 ranking of Zacks (Buy). You can see You will find here the complete list of Zacks actions # 1 of the current rank (strong purchase).

Groupon's long-term earnings growth rate is currently set at 3%.

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