What Is Amazon.com, Inc. (AMZN) Doing To Avoid Repetition Of 2013 Holiday Shipment Chaos?


Amazon.com, Inc. (NASDAQ:AMZN) had a torrid holiday season in 2013 with a lot of unhappy and disappointed customer, even though they had cleared $25.6 billion in 2013 Q4. This was mainly due to delayed shipments and some customers even received their items after the holiday season. The companies delivery partner United Parcel Service, Inc. (NYSE:UPS) had to face an increased demand and bad weather, which delayed the shipments further.   Finally, both Amazon and UPS had to offer apologies and refund the shipment fees to unhappy customers. Amazon.com, Inc. (NASDAQ:AMZN) doesn’t want to repeat the same mistake again this year and are reportedly stacking up the manpower to speed up the shipments. Jonathan Marino reported in ‘The Street’ about Amazon’s plans for this holiday season.

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“[…]Amazon’s need for temp help far outstrips even that of the holiday shopping mainstay. Amazon is reportedly looking to bring on 80,000 hired holiday hands to get it through this Black Thursday, and more, as online orders are expected to keep increasing, putting pressure on shipping lines,” Marino reported.

Marino said that Macy’s, Inc. has announced that they would bring in more temporary help than they did last year, but he feels that Amazon’s need for temporary help in the upcoming holiday season is way past the imagination. He mentioned that as the first step, Amazon.com, Inc. (NASDAQ:AMZN) will be hiring 80,000 temporary workers to get past the black Thursday. They have plans to hire more as the demand keeps increasing.

Amazon.com, Inc. (NASDAQ:AMZN) is focusing more on developing direct delivery capability rather than depending on services like UPS for shipments, which was one of the major reason for the issues in 2013. They have also built 38 new fulfilment centers in North America and 15 sortation centers. Sortation centers would sort the packages based on Zip Code. The newly opened sortation centers would enhance the direct delivery capability of Amazon.

Marino reported that Amazon.com, Inc. (NASDAQ:AMZN) is taking the queue from Brick and Mortar Retailers’ by coming up with their own Brick and Mortar type outlets in selected cities in both the coasts in US.

As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 2.5 million Amazon.com, Inc. (NASDAQ:AMZN) shares.

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