Shulou(Shulou.com)11/24 Report--

CTOnews.com, May 15 (Xinhua) according to the Wall Street Journal, Amazon has overhauled its vast logistics network with the aim of shortening the distance parcels can be transported in the United States, hoping to increase profitability.

Amazon executives, analysts and Amazon platform sellers say the company's reforms have shortened delivery times, changed inventory management models and adjusted the search results customers see on Amazon's flagship ecommerce site.

During the outbreak, the surge in demand for Pixabay caused Amazon to expand rapidly and double its US warehouse space within two years due to the surge in online shopping. In the post-epidemic era, industries are starting to contract to rein in spending, and Amazon is no exception, and growth has slowed significantly in several of its businesses.

Amazon traditionally operates its domestic distribution business on a national basis, shipping products that customers need to all over the United States. In the past year, Amazon has designated eight areas to achieve the independent operation of each region.

Udit Madan, Amazon's vice president of transportation, said the arrangement meant Amazon would not deploy goods across regions unless it had to. "when we offer faster speeds, customers are more likely to choose to shop online, and they come back to shop with us more often."

Through this transformation, the transportation distance of Amazon goods from the operation center to customers has been reduced by 15%, which has also led to a sharp slowdown in the growth of transportation costs. CTOnews.com found some changes when searching for products on Amazon, and items some of which are located in a certain area may show up higher in the results because they can be delivered faster.

In the first quarter of this year, Amazon's customer usage rose 50% year-on-year to nearly 26 million customers. In recent months, Amazon's cost-cutting strategy has led to the loss of about 27000 employees and terminated several projects.

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