What You Might Not Know About Amazon

January 26, 2016

Amazon Plane

Amazon's extroverted founder, Jeff Bezos, wasn't gong to settle with being a bookseller. From the very beginning, he envisioned Amazon as the everything store, offering boundless selection at seductive prices. To achieve such a great feat, Bezos created a corporate culture of relentless ambition. Fast forward about 22 years to present day, and you will find that the same ambition that fueled Amazon back in 1994 has not fled. 

In order to achieve extraordinary results, you must be willing to take risks. Bezos has been taking risks from the time he left D.E. Shaw to create Amazon, to when Barnes & Noble threatened to crush its new competitor. Nevertheless, Bezos' ambition has carried Amazon to the current powerhouse we recognize it as today. Such ambition leaves many wondering what Bezos and Amazon's next big move will be. 

In a previous blog, we discussed how Amazon could potentially be spooking UPS and FedEx by building its own shipping infastructure. While we all anxiously await the day drones will be dropping parcels on our front porch, Amazon has been focusing its attention elsewhere. According to the Seattle Times, Amazon is negotiating to lease 20 Boeing 767 jets for its own air-delivery service. This comes as a direct result of the company being fed up with third party carriers, such as UPS, struggling to keep up with the rapid growth of e-commerce. 

More recently Amazon China registered to provide ocean freight services. Essentially driving Chinese sellers to use their services to provide product to Amazon US customers. Allowing them to get better control over a significant lane between China and the US.

Amazon has always been about the customer. In fact, Amazon formulates this in its business model as, "Our goal is to be the Earth's most customer centric company." Back in December, 2015, Amazon announced that it had purchased thousands of truck trailers to ship merchandise between distribution facilities. This adds to the 'last mile' that they rolling out in San Francisco, Los Angeles and New York where Amazon packages are being delivered by Amazon supervised contractors. Based on the structure of its business model, and its recent ventures, its obvious Amazon is seeking to have more control of the end-to-end customer experience. 

Whereas Amazon is looking at acquisitions, the opposite seems true for the likes of FedEx, who announced in June, 2015, it had permanently retired 15 aircrafts (1970 DC10 MD) and 21 related engines. So what is the big difference between the likes of FedEx, UPS, and Amazon? Could it be the leadership of Bezos? Or could it simply be keeping up with the times? 

Amazon Statistics

New and innovative technologies are constantly emmerging to make shipping processes faster, more accurate, more scalable, and ultimately, less of an expense for the end consumer. If you are not adapting to keep up with the exponential growth of e-commerce by innovating and investing in new processes and technologies, you will not remain relevant or competitive withinin your market. 

According to top executives, Amazon's objective is to guarantee delivery within a 90-minute to two-hour window. Judy Tong, President of Alibaba's Logistics arm Cainiao, states, "The ultimate goal of Cainiao is to make it easy to deliver goods to anywhere, so that parcels delivered in China can arrive in 24 hours and parcels delivered cross-border can arrive in 72 hours instead of several days currently for China shipments and days or weeks for international orders." 

If you are in the industry, whether you’re involved in e-commerce, logistics, or whatever it may be, it is time you follow in the footsteps of these two global powerhouses. Ambition, and customer satisfaction are what fuels their fire. They have recognized that it is no longer an option, rather a necessity, to innovate in order to surpass the competition.


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