AMAZON, How the world's most relentless retailer will continue to revolutionize commerce, 2d Edition, by Natalie Berg and Miya Knights, Kogan Page 2022

From a bookseller's on-line garage to a tech giant's e-retail dream with net sales of approximately $386B (2020), according to authors Berg and Knights bigger than Walmart, Netflix, Target, Nike and Costco combined,  we can't wait to see Bezos' next move.  Because Amazon has done more than take over retail; the company has taught us the power of smart, simple tech combined with a global reach that emphasizes simplicity and speed.  Add the extra boost the giant took on during the pandemic and consumers can begin to feel that nothing is impossible for this now powerful revolutionary.  There is much to be learned about retail and tech in Amazon.

Just at the tip of the pandemic the numbers changed, and by 2020 Amazon's net income nearly doubled to $21.3B. The number of Amazon.com employees (full and part-time) grew from 17,000 in 2007 to 1,298,000 in 2020 (Daniela Coppola on Statista)  Coincidentally, founder Jeff Bezos' net worth, now estimated at $183.5B, grew by $75B.  By March of 2020 the number of first-time Prime viewers had nearly doubled.  By the end of 2020, Prime Video watched hours had increased 70% for a total of 175M members streaming via Prime, Amazon's premium category.  And when Amazon had progressed from its Prime streaming options to retailing TV and sound equipment, as well as content production,  the market looked to be theirs.  

The pandemic pushed retail, entertainment and food industries into more directions they had not been prepared to service at a speed only a tech-savvy giant like Amazon could ramp up to.  While other giant retailers struggled with their on-line presence and fell back on massive retail stores because their warehouse and logistics operations were clunky and underpowered, Amazon worked all the angles.  Larger warehouses and smaller fulfilment centers filled out an innovative supply chain system whose goal was 24 hours or less service.  With Amazon, expect to see a mix of human Prime pickers with the latest robotics for picking and stacking.  The acquisition of Whole Foods added more demands for foolproof delivery ops; despite price challenges and delivery costs, this relatively new Amazon arm has successfully adapted to Amazon operations and in some urban areas now dominates the retail and prepared food markets. 

During the height of the pandemic lockdown, delivery stats raised the bar as retailers struggled to connect with customers.  In fact, according to Berg and Knights research of MWPVL International consulting, Amazon increased the volume of delivered packages by 67 percent to 415M.  The number of Amazon's US delivery stations increased 71% to over 275.  No wonder we're not driving to the malls!  Although the company's continued double digit growth stats are impressive, their investment in physical assets will continue to pave new roads for old-style retail as the company continues to prove how tech will drive competitive growth.

Readers will enjoy Amazon's deep dive into pandemic hyper tech and supply chain strategies.  Further, their partnering with selected suppliers and expert industry movers is a powerful lesson for any US company's daily delivery struggles.   .  

Patricia E. Moody

FORTUNE magazine  "Pioneering Woman in Mfg" 

IndustryWeek IdeaXchange Xpert

A Mill Girl at Blue Heron Journal, on-line resource for business thought-leaders and decision-makers,  patriciaemoody@gmail.com