What's Going On With Amazon Stock Monday

Amazon.Com, Inc AMZN shares are trading higher Monday. The stock was trading lower earlier in the day since Friday data showed U.S. consumer sentiment declined to a six-month low in May.

Today several positive reports surfaced regarding the company, capable of improving its service productivity and topline.

Amazon leveraged artificial intelligence to speed up deliveries — by minimizing the distance between its products and customers.

Amazon tapped AI to drive its logistics, including transportation, where customers search for products on Amazon and to figure out where to place its inventory, the company VP Stefano Perego told CNBC.

"I think one area that we consider key in order to lower cost to serve is on inventory placement," Perego said. Amazon can make same-day or next-day deliveries if a product is nearer to customers, as its Prime subscription service offers.

In the U.S., more than 76% of the products U.S. customers order are now from fulfillment centers within their region. Amazon also tapped robotics in its fulfillment centers for repetitive tasks like lifting heavy packages.

Robotics partly handles close to 75% of Amazon customer orders. Perego said that when automation and AI become more widespread, they will change, rather than eliminate, the jobs that workers perform.

Reportedly, Amazon has overhauled its logistics and delivery mechanism for hassle-free service. It has cut delivery times, reshaped its inventory management, and changed its search results. 

Amazon increased the speed of delivery by expanding warehouses it calls "same-day centers."

Amazon also hiked the fee for its India sellers effective May 31, 2023. The hike will likely lead to higher prices for certain items sold on the platform, Moneycontrol.com reports.

Currently, for every item purchased from a seller on Amazon, the seller pays fees to Amazon, including charges for inventory storage, shipping, returns, and a seller fee.

Price Action: AMZN shares traded higher by 0.08% at $110.35 on the last check Monday.

Editor's Note: The story has been updated to correct the typo in sixth paragraph to 76%