Amazon Reported to Open 1,000 Small Delivery Fulfillment Hubs Across Cities in the US

The e-commerce giant will soon become a part of your neighborhood. As reported by Bloomberg, Amazon is planning to open 1,000 small warehouses in the suburbs to help meet the surging demand of orders. According to sources, it expects to increase the number to 1,500 in the near future.

In a bid to fulfill the online orders within a shorter delivery period, Amazon will open miniature facilities in cities and suburban neighborhoods across the country. The properties could include vacant department stores, shopping malls, and even car dealerships. Facing stiff competition from rival companies, mainly Target and Walmart, who use their physical outlets to provide same-day delivery, the plan can also be viewed as a scheme to further tip the scale in Amazon’s favor. The online retailer already offers same-day and one-day delivery services on more than ten million products to its Prime subscribers. 

Amazon’s warehouses have conventionally been on the outskirts of the suburbs. The strategic move of opening local centers will bring it close to its customers and propel quick deliveries. It also aims to accelerate the deliveries by using its own transportation system.

Since the e-commerce retailer has started relying on its logistic operation, it has become a potential threat to UPS, Amazon’s long-term carrier partner. Addressing the concern, an Amazon spokeswoman stated that its last-mile delivery system is meant to supplement and not replace its carrier partners. She also mentioned, “Our dedicated last-mile delivery network just delivered its 10 billionth package since launching over five years ago, and we’re proud to provide a great service for our customers.”

 With e-commerce suddenly becoming more popular, Amazon did its best to keep up with the surging demand during the pandemic. Foreseeing a swell in the orders during the upcoming holiday season, it has doubled its efforts to ensure timely deliverance by investing in the recruitment of workers at its facilities and bringing the fulfillment hubs closer to its customers.  

Amazon is one of the fewer companies that has thrived during the outbreak, reporting a vast revenue profit in its second quarter. It witnessed a 40% spike in its sales and a $5.2 billion in net income. The company went on a hiring spree and recruited 175,000 employees earlier in the year with plans to retain 125,000 permanently to keep pace with the soaring demand. As the company continues to prosper and expand, it is further seeking to hire 33,000 people for the vacancies in the corporate and tech departments across its offices in the US. This includes New York, Seattle, Denver, Phoenix, and another 100,000 employees in packing, shipping, and sorting orders in the new delivery hubs. Alicia Boler Davis, who oversees Amazon’s warehouses, said the company is offering $1,000 sign-on bonuses in some cities where it may be harder to find workers, such as Philadelphia, Detroit, New York, and Louisville, Kentucky.