Amazon Opens Remote Warehouses in Suburban Neighborhoods

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With the Covid-19 lockdown, Amazon couldn’t fulfill its 2-day delivery pledge earlier this year, when shoppers flooded the company with more orders than it could handle.

According to Bloomberg, while delivery times have since improved by hiring 175,000 new workers—with holiday shopping approaching—Amazon is consumed with honoring their 2-day delivery pledge. They are opening 1,000 small delivery hubs in cities & suburbs all over the US—in neighborhoods previously populated with car dealerships, fast-food establishments, shopping malls and big-box stores.

The delivery hubs, eventually numbering about 1,500, will bring products closer to customers, making shopping online about as fast as a run to the store. A recently opened warehouse in Holyoke, MA, for example, is located close to a once vibrant mall, and near a population base of more than 600,000 people. This action will also help Amazon take on Walmart & Target Corp. which are using thousands of brick & mortar stores to beat Amazon at its own game, by offering same-day delivery—order online & pickup at the store.

According to logistics consulting firm MWPVL International Inc., Amazon is basically duplicating United Postal Service’s (UPS) logistics operation, and many of Amazon’s new delivery hubs are within walking distance of UPS facilities. MWPVL estimates Amazon will deliver 67% of its own packages this year & will increase that to 85%—eventually eliminating dependance on UPS.

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