Amazon is Expanding its Infrastructure to Ensure 1-2 Day Shipping
Updated: Dec 11, 2020
Amazon is expanding its infrastructure so it can meet its 2-day Prime delivery shipping goal.
Amazon struggled to meet its Prime delivery promise during the COVID-19 pandemic due to a rapid increase in demand.
The company hired 175,000 new employees in response to the spike in demand.
Since then, Amazon has been investing major money into expanding its infrastructure to ensure 1-2 day delivery.
Not only does this benefit Amazon's customers, but Third-Party FBA Sellers as well.
FBA sellers rely on Amazon to handle and deliver products on time, so it is great to see Amazon continue to improve its already excellent fulfillment service.
Within the past couple of weeks, Amazon announced that they:
Added 9 new Amazon branded planes to its fleet
Plan to open 1,000 small delivery hubs in cities and suburbs all over the U.S.
Received Federal Aviation Administration approval to use drones for delivery
Amazon added 9 new planes to its fleet between May-July, which is the biggest addition in a three-month span since it began in 2016.
The new addition brings Amazon's Air Fleet to a total of 70 planes. It is expected to grow to more than 80 by 2021.
Amazon still relies on outside carriers, but the goal is to move all operations in-house to control costs, delivery speed, and one day compete with rivals such as FedEx & UPS.
In 2021, Amazon is opening a $1.5 Billion Air Hub in Northern Kentucky. It is designed to have a capacity of 100 planes and handle 200 flights per day.
Amazon FBA Warehouses
Amazon plans to put 1,000 warehouses in cities and suburban neighborhoods all over the United States.
The purpose of the new delivery hubs in these locations is to bring products closer to the customers and make online shopping feel like a quick trip to the store.
Amazon just opened a new warehouse in a Massachusetts suburb that brings products within a short drive for over 600,000 people.
The goal is for Amazon to inch closer to everyone in the United States with each new warehouse.
Eventually, the online retail giant wants to open over 1,500 new warehouses.
The goal of this expansion is to gain a competitive advantage over Walmart & Target.
Amazon Drone Delivery
Amazon recently received approval from the Federal Aviation Administration to use drones to deliver packages.
Amazon did not say when it will start using drones to drop packages off at its customer's doorsteps, but this is a huge step forward.
Only three companies have received a part 135 air carrier certificate; Wing Aviation, UPS Flight Forward, and now Amazon. Wing Aviation is owned by Google's parent company, Alphabet.
The goal of using drones is to shorten delivery times to 30 minutes or less.
Amazon already has over 40% of the U.S. E-commerce market share and will continue to dominate the market as they input these new infrastructure expansions.
Amazon wants its third-party sellers to succeed with them.
The multinational technology company is preparing to compete for market share in many different industries, such as e-commerce, cloud computing, logistics, digital streaming, and even artificial intelligence.
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