UPS' No. 1 Opportunity and Challenge in 2021 (Hint: It's Not Amazon) - MSN
UPS delivered anther good quarter, but questions remain about its potential to expand profit margins while servicing burgeoning e-commerce growth from Amazon and other customers. The jury is definitely out on the matter. That said, if I was on that jury, I'd be arguing in UPS' favor. Here's why.
Why margin matters
The question has been bothering investors in UPS and FedEx for some time. Yes, everybody loves a revenue growth opportunity. However, nobody loves margin pressure, and there's little doubt that delivering inefficiently packaged business-to-consumer (B2C) deliveries to low density, hard to find, residential addresses is a more costly activity.
UPS delivered anther good quarter, but questions remain about its potential to expand profit margins while servicing burgeoning e-commerce growth from Amazon and other customers. The jury is definitely out on the matter. That said, if I was on that jury, I'd be arguing in UPS' favor. Here's why.
Why margin matters
The question has been bothering investors in UPS and FedEx for some time. Yes, everybody loves a revenue growth opportunity. However, nobody loves margin pressure, and there's little doubt that delivering inefficiently packaged business-to-consumer (B2C) deliveries to low density, hard to find, residential addresses is a more costly activity.
