During roughly the same period, Amazon said it nearly doubled the size of its fulfillment network. Since the end of 2019, Amazon has hired roughly 670,000 people, with its global workforce now totaling more than 1.4 million, according to the company. “Granted, it’s at a cost penalty in many cases."
“We’ve made commitments that are larger than normal," he said on a call with analysts in October.
For the first time in a while, he said, the company is not capacity-constrained. At the same time, some items like household products and sporting goods were showing delivery windows of a few days, ShipMatrix said, emphasizing Amazon’s message to shop early.īrian Olsavsky, Amazon’s chief financial officer, said the company’s inventory increased in preparation for the busy period. As of mid-November, more than 98% of parcels that arrived at Amazon’s delivery centers, which typically are in close proximity to packages’ final destinations, were being delivered the next day, according to estimates from research firm ShipMatrix Inc. The work prepared Amazon for an unusual holiday shopping season in which a national labor shortage and global supply-chain challenges have constrained the ability of many companies to obtain and deliver certain products in as timely a manner as they did in the past.Īmazon has encouraged customers to shop early this year due to the supply-chain issues, and company executives have said they are “ready to deliver" and have been preparing for the holidays since the start of the year. Nevertheless, the company continued to build out a network capable of such a feat. During the pandemic, Amazon put on hold its promise to deliver many items to customers in one day.
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