Amazon.com Inc. (NASDAQ:AMZN) could potentially save over $10 billion annually by 2030 through its new robotics technology, according to an analyst.

What Happened: According to Morgan Stanley analyst, Brian Nowak, Amazon’s new robotics technology could lead to significant cost savings. The analyst estimates that every 10% of Amazon’s U.S. units moving through the new robotics warehouses could generate $1.5 billion to $3 billion in savings.

Nowak also suggests that the base case robotics penetration could reach 30% by 2030, potentially leading to annual efficiencies of over $10 billion. The analyst highlights that over the past 12 years, Jeff Bezos‘ e-commerce giant has been advancing its robotics technology, unveiling six major new robotic designs since 2022.

These robots are built to improve efficiency at multiple stages of the order fulfillment process, including storage, inventory management, picking and packing, sorting, and outbound operations. Given that fulfillment costs make up nearly 20% of Amazon’s retail revenue, automation could significantly impact the company’s long-term EBIT potential.

SEE ALSO: Bernie Sanders Accuses Amazon Of ‘Uniquely Dangerous’ Warehouse Conditions, E-Commerce Giant Says Senator’s Premise Is ‘Fundamentally Flawed’

Amazon is set to report its earnings on Feb. 6 after market close. The stock was up 0.58% during the premarket trade on Tuesday.

• READ MORE: Amazon’s $100M Land Deal Launches Its $10-Billion Data Center Project In Ohio

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.