[esilver]

There are substantial margins to be had in over-the-road freight. The launch of the Amazon Freight platform last week is a clear indication Amazon knows this.

Managing an enormous seller marketplace is almost as fraught as shopping on one. I can understand why Amazon wants to act as the broker in every aspect of the retail transaction. As a third-party broker you’re shielded from much of the liability while reaping much of the benefit.

Unfortunately, third-party brokers are limited in the kinds of interventions that first-parties can bring to bear during a service failure. Walmart, Target, et al., can fix a wayward transaction much more quickly and cheaply than Amazon can by virtue of maintaining many well-staffed warehouses, i.e., stores.