Will Amazon Deliver Your Package On Time? E-Commerce Giant Says It’s Ready For Holidays
As the supply chain crisis in California shows no signs of letting up any time soon, Amazon (AMZN) is reassuring customers that it is ready to handle the crushing demand of the holiday shopping season and has been ramping up since the beginning of the year.
The e-commerce giant said that it has been doing its part well ahead of the holidays to ensure that its customers receive their packages on time in lieu of the supply-chain disruptions that are expected to have a major impact on the holiday shopping season.
Container shipments are bottlenecked in California’s Port of Long Beach and Port of Los Angeles, waiting to be offloaded and distributed to retailers across the U.S. Many store shelves are bare of products as retailers are unaware of when they will arrive.
To try and thwart the long wait times that could delay holiday orders for consumers, President Biden announced earlier this month that the two ports would begin operating 24/7 in an attempt to sift through the backlog.
Amazon, however, said it has already invested in its transportation capabilities and created a supply chain that is built for “safety, speed, and efficiency” so recent supply-chain constraints don’t impact its customers.
To ensure that consumer packages get to shoppers in time for the holiday, Amazon said it has invested in technology to better forecast what products customers want and put these products in fulfillment locations close to them.
The retailer has also invested in people, aircraft, ships, and buildings to offer more ways to get orders from point A to point B with added flexibility. The company has increased its ports of entry by 50% and doubled its container processing capacity. It has also expanded its ocean freight carrier network partnerships.
Amazon will have a fleet of more than 85 aircraft through Amazon Air later this season that it can utilize to transport packages for longer distances and 50,000 trailers to haul freight under its Amazon Freight network.
More than 800 delivery stations exist globally and there is a network of more than 260,000 delivery drivers globally through the Delivery Service Partner program and hundreds more Amazon Flex drivers.
Amazon is also adding 150,000 seasonal workers for fulfillment jobs in the U.S. as it ramps up for the holidays, paying an average of $18 per hour to start and a $3,000 sign-on bonus.
As of Monday at 1:01 p.m. ET, shares of Amazon were trading at $3,328.76, down $6.79 or 0.20%.
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