Amazon News – December 2019

December is a month full of happiness and light. It’s the month of Christmas and Hannuka with so many wonderful decorations (that I luckily got to see in Europe).

From a business perspective, the month of December is a very happy month; the sales graphs soar up, and profits rise. Definitely a great way to finish off the year.

During the past month, Amazon highlighted its “Last Mile” program, shortly after promising to execute their “One Day Shipping” and “Same Day Shipping” programs

וThe separation from FedEx resulted in Amazon focusing its logistical efforts to lead in the last quarter. 50% of the U.S online orders were Amazon orders. Amazon is expected to grow by 70% in 2020 which will place it as the company with the largest sales capacity in the US (overpowering UPS and FedEx).

The holidays helped Amazon in more than one aspect: the stock price rose, the sales are at an all-time high, and their logistical capabilities seem flawless.

Here are a few data points shared by Amazon:

Sales using Prime Free “One Day” and “Same Day” deliveries are four times higher than this time last year. This will result in an incredibly high standard for delivery speed in the online retail market.

Over $1 Billion were spent with Third Party Sellers, especially from small and medium businesses.

Over 5 Million new users joined Amazon Prime around the world during the week of the Holiday in December.

Additional info including the top sellers on Amazon can be found at the links:

>> https://press.aboutamazon.com/news-releases/news-release-details/customers-shopped-record-levels-holiday-season-billions-items

>> https://www.cnbc.com/2019/12/26/amazon-has-its-best-day-since-january-after-record-holiday-shopping.html

As always, thank you Edge by Ascential for gathering all of Amazon’s interesting actions every month and for your insightful comments. You can access their monthly report down below.

If you would like to receive the monthly Amazon News Report emailed to you, you are welcome to subscribe to our monthly newsletter.

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Aside from highlighting the Last Mile Program, and in addition to the busy month of December – Amazon managed to also provide innovations in a number of aspects.

Amazon Business

1. Amazon announced three solar energy projects in the United States and in Spain. The goal is to supply energy to the fulfillment warehouses of Amazon in those demographic locations and for Amazon Web Services data centers.

>> https://www.cnbc.com/2019/12/03/amazon-gives-green-light-to-new-solar-projects-in-the-us-and-spain.html

2. Amazon received the final approval to build a second office center in North Virginia. The plan is to build a 22-floor building that will debut this year and will be completed by 2023. The new offices will also employ 25,000 new people for various professions.

>> https://www.cnbc.com/2019/12/31/amazon-hq2-renderings-released.html

Arlington County

Amazon Marketplace

Amazon is planning to increase fees for third-party sellers on shipping and fulfillment by 3% in February 2020. This decision was quite predictable in light of the One Day delivery services and its large expenses.

https://www.reuters.com/article/us-amazon-com-delivery/amazon-to-raise-u-s-fulfillment-fees-3-percent-for-merchants-next-year-idUSKBN1YO2AG

Amazon Logistics / Fulfillment

Amazon is running an additional fundraising promotion to raise funds for an electric vehicle project – Rivian. The current fundraising value is $1.3 Billion and was endorsed by both Amazon and Ford. In September of this year, Amazon acquired 100,000 Rivian distribution vehicles as part of their environmental program and their efforts to reduce emissions and become greener.

>> https://www.forbes.com/sites/alanohnsman/2019/12/23/electric-truckmaker-rivian-backed-by-amazon-ford-raises-whopping–13-billion/#15b50b521847

Amazon Hardware & Services

 Amazon is introducing Alexa to the auto industry. The vehicle supporting software is called – Amazon’s Echo Auto and is optimized to use in cars.

Correspondingly, Amazon announced collaborations with 10 car manufacturing companies such as BMW, Audi, and GM. The companies will test and examine the new software to hopefully start manufacturing supporting cars this year.

>> https://techcrunch.com/2020/01/06/amazon-drives-deeper-into-cars-with-new-alexa-partners-echo-auto-expansion

>> https://www.cnbc.com/2019/12/24/demand-for-amazon-alexa-in-cars-is-through-the-roof-exec-says.html

2. Amazon filed for a patent utilizing hand scan identification which will be used at various payment processes. It seems that this method will be used at the Amazon Go stores that require an app phone scan. In the future, it seems that the stores will allow hand scans instead. 

This technology can also be used for security products such as cameras. This raises many ethical privacy questions that are already discussed in the public area. As of today, Amazon is holding much data and info about its clients. Now, Amazon is asking to accept biometric information too. This is a problem because Amazon is also planning on selling this technology to other companies.

>> https://www.vox.com/recode/2019/12/26/21037923/amazon-go-hand-scanning-patent-biometrics-whole-foods-identity

Amazon Around the World

1. Regulators in the UK are closely analyzing Amazon’s $575 Million Investment in the startup Deliveroo (a fast-food delivery service). In the UK’s claims, this investment will hurt the competition in the market and will result in a price increase for both clients and vendors.

2. Amazon is expecting to open a second Fulfillment Center in Brazil to reduce the delivery time in 2020.

>> https://www.reuters.com/article/us-amazon-distribution/amazon-com-to-open-distribution-center-in-northeastern-brazil-in-2020-idUSKBN1YG2E1

Amazon HealthCare

An interesting collaboration between Amazon Pill Pack and American insurance company Blue Cross Blue Shield: Using the MyBlue app, BCBS members will be able to order, pay and track prescriptions and medicine straight to their house. This collaboration is a win-win for both sides.

>> https://www.healthcarefinancenews.com/node/139588

In conclusion – What does 2020 hold for Amazon

A super interesting article discussing how Amazon will be the most important company in 2020.

In each and every industry Amazon is getting involved with, the company expands and grows. Industries such as AWS, Ecommerce, Logistics, Food, Media and Ad, Health, Inventory, and more.

According to this article, Amazon will be the second-largest employer in the world!

>>

>> https://www.cnbc.com/2019/12/13/amazon-will-be-the-most-important-company-of-the-2020s.html

A few interesting numbers from the article:

Wishing everyone a great year and an amazing decade,

Meirav

מירב

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