This is an interesting article about Amazon’s delivery network, which is now the 4th largest in the United States. Here are the numbers (most of which are as of 2019):
- Since 2014, Amazon has spent $39 billion building out its delivery network. When you add in warehouses and airplanes, this number increases to about $60 billion. As of 2019, Amazon leased 97% of its fulfillment and data center spaces.
- Amazon is becoming increasingly vertically integrated. Last year, Amazon delivered about 58% of the 4.5 billion parcels that it shipped to US consumers. This represents about 22% of all online retail deliveries.
- Outside of the US, Amazon still handles close to 50% of its own order deliveries. By 2025, Bank of America Global Research is predicting that Amazon could grow to handle somewhere between 38% and 49% of all online order deliveries in the US.
- Amazon is the 4th largest in terms of US package deliveries (2019), behind FedEx, UPS, and USPS (in that order).
- Amazon’s fulfillment network roughly entails: receiving centers -> fulfillment centers -> sortation centers -> last-mile delivery stations. It’s a hub and spoke system with the physical real estate naturally getting smaller as you get closer to the end destination. For a lot more information on their network, click here.