The Power And Innovation Of Amazon
A Closer Look with
After watching Amazon Business hit $1 billion in sales during its first year of business, distributors may be casting a wary eye to the giant e-commerce retailer in 2017.
Although that is a small amount of money compared
to Amazon’s overall sales, it is clear that the Seattle-based
company sees a major opportunity to take market share
in the industrial marketplace.
In January, Amazon Business said it had more than
45,000 different sellers, the first time it has released that
figure since the venture launched in late April of 2015.
Amazon also restated that it has more than 400,000
Amazon Business customers, a figure that it shared after
completing its 2016 second quarter in June. The company
reported having 200,000 Amazon Business customers
on Jan. 1, 2016, and 300,000 in early May, meaning the
business is adding about 100,000 customers per quarter.
Amazon’s also said that Amazon Business has made its
first international expansion by launching in Germany
What Amazon accomplished in 2016 clearly shows that
Amazon and Amazon Business are striving to innovate,
further improve its logistics capabilities and expand its
fulfillment centers around the country to bring products
to customers in less than two hours. In fact, the company
recorded the fastest processing of a product in its history:
an order placed and delivered in 20 minutes.
Employment is also soaring. Amazon said in January
that it will hire 100,000 new full-time employees over
the next 18 months, boosting its domestic workforce to
280,000 people. That reflects a 56 percent surge compared to the end of 2016. In 2011, Amazon had 30,000
employees in the U.S. The new employees will be used
throughout Amazon’s giant operation and, in particular,
its fulfillment centers.
In November, Amazon announced plans to open two
fulfillment centers in Aurora, IL, creating more than
1,000 full-time jobs. The company currently has other
Illinois fulfillment centers operating in Edwardsville,
Joliet and Romeoville and another under construction
in Monee. And in January, Amazon said it would open a
second fulfillment center in Jacksonville, FL, six months
after it said it would open a similar center in that city.
Although Amazon does not release figures regarding its
fulfillment centers, it is believed that the Seattle-based
company added nearly 30 warehouses in the last quarter
A report from the CoStar Group, a leading provider of
commercial real estate information, analytics and online
marketplaces, indicates that Amazon has more than 65
million square feet of space in its distribution centers in
the U.S. as of November. It has another 16 million square
feet in its distribution pipeline either under construction
or leased space in existing buildings, CoStar said. Amazon