Amazon is now offering a new program to help apartments deal with the increasingly large number of packages. As more people begin to use Amazon Prime to order staples many apartments struggle with keeping all the packages secure and organised. Amazon responded by implementing Hubs into these apartments for a fee of $10k - $20k. This locker system automates the process of managing packages. The mail carrier places a package into one of the independent compartments and then a notification is sent to the resident with a code that allows them to open the slot holding their package. The system even works with orders that were not made on Amazon. Hub by Amazon attempts to prevent packages from overwhelming large apartments.
This new technology shows how Amazon is shifting from indirect to direct distribution of their products. Indirect distribution was initially necessary for Amazon; they simply did not have the infrastructure to send packages worldwide. However now that Amazon is the most valuable retailer in the U.S. they definitely have the means to take control of their distribution process. The final step of delivery may seem simple but according to the article it is one of the most expensive parts. In response to this problem Amazon developed Hub, hoping that it will keep their prices low and competitive by reducing shipping and handling costs. Hub by Amazon is an example of how Amazon is moving towards direct distribution of their products.
No comments:
Post a Comment