The Next Step

Amazon is growing in leaps and bounds so it just makes sense that they start their own air delivery system both big and small. In order to control costs end-to-end processes are required and that is just what Amazon is doing.

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I have been a pretty constant Amazon customer for the past 15 years or so.  I wish I could say that I have also been a stockholder for that period but this seems to be another example of lost opportunities for me.  🙂  I simply like the convenience of getting what I need without gassing up the car and driving the 45 miles round trip to most stores. The variety of goods that Amazon now carries is astounding and seems to grow daily.

I am convinced that Amazon is the next paradigm shift in how we get much of what we need. Maybe clothes, a high touch item, and food are not totally compliant with remote sales but Amazon is even testing those areas.  It seems inevitable that they will be the Walmart of the 21st century in that they will dominate the consumer retail sales.  For them to become number one means Walmart will have to shrink and that will mean lost jobs at many rural locations where jobs are needed the most. But since Walmart is pretty much a minimum wage employer not as much is lost as is gained in  areas where Amazon builds regional fulfillment centers. I just checked the Amazon regional center near me and it appears that they pay about $12 to $14/hour compared to Walmart’s $7 – $11/hour.  I know that Amazon has a reputation of expecting their employees to perform at fully involved levels that are not comfortable for some. I also know that their centers are highly automated.

Amazon is one of those forward thinking companies that is just not satisfied with the status quo. They are even investigating drone delivery to locations close to their centers. Is all this a good thing?  I guess it depends on your point of view doesn’t it?

2 thoughts on “The Next Step

  • I try to frequent Walmart. They are bringing fresh food to food deserts (when they are allowed in inner cities and poor rural areas). In order to order from Amazon you have to have a credit card. That leaves the poor out of the equation.

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  • Yeah I guess that is true. Only about 80% of families have a credit or debit card to use at Amazon so there will a future need for brick and mortar retailers like Walmart. At least for now.

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