Amazon boxes stacked on a doorstep

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Delivered to Your Door

What actually happens after you click “Buy” on Amazon?

AS YOU READ, THINK ABOUT resources, from technology to workers, needed to make online shopping possible.

For many people. this time of year kicks off the holiday shopping season. And these days, a growing number of people are buying their gifts online instead of in stores. With the coronavirus pandemic keeping millions of Americans at home this fall, internet retailers will likely get an even bigger boost. No one has done more to drive the popularity of online shopping than Amazon—the world’s largest e-commerce company (see Big Business).

Today, Amazon is the biggest name in online retail. While many small businesses are struggling to stay open during the pandemic, Amazon has doubled its profit from the previous year. The site, which launched 25 years ago, started out as an online bookstore. Now Amazon offers its customers a dizzying array of products.

Amazon has spent billions of dollars (and established tightly controlled workplace practices) to ensure super-fast delivery. It takes just a couple of clicks to purchase an item, which can arrive at your door as quickly as two days later. Read on to find out about the staggering amount of labor, technology, and transportation needed to get products from Amazon’s website into your hands.

For many people, the holiday shopping season starts this time of year. And these days, more and more people are buying their gifts online instead of in stores. The coronavirus pandemic is keeping millions of Americans at home this fall. So internet retailers will likely get an even bigger boost. No one has done more to make online shopping popular than Amazon. It’s the world’s largest e-commerce company (see Big Business).

Amazon is the biggest name in online retail today. Many small businesses are struggling to stay open during the pandemic. But Amazon has doubled its profit from last year. The site started out 25 years ago as an online bookstore. Now Amazon offers its customers a vast collection of products.

Amazon has spent billions of dollars to provide super-fast delivery. The company has also put tightly controlled workplace practices into place. You can buy an item with just a couple of clicks. Often the item arrives at your door a few days later. It takes an enormous amount of labor, technology, and transportation to get products from Amazon’s website into your hands. Read on to find out how it’s done.

PLACING AN ORDER

Amazon’s website lists an estimated 350 million different items, from groceries and furniture to clothing and electronics. Some of these products are sold directly by Amazon. Smaller retailers can also pay Amazon to sell their goods, which are stored in and shipped from one of the 75 Amazon warehouses located across the country.

As soon as a customer submits an Amazon order, the website sends the request to the closest warehouse that stocks the item. These warehouses are called fulfillment centers, and they are the secret to Amazon’s success, says Miya Knights, a retail analyst who co-authored the book Amazon: How the World’s Most Relentless Retailer Will Continue to Revolutionize Commerce. “The shipping is so fast,” she says, “because Amazon’s delivery network is so big.”

To optimize which warehouses stock which products, Amazon uses an algorithm, or list of rules a computer follows, to predict which products people might want to buy. For example, if you purchase toothpaste every two weeks, Amazon’s algorithm will pick up on that pattern. Eventually, it will start shipping that brand of toothpaste to a warehouse near you before you even buy it. “Amazon anticipates as much as it can, using data to try to predict how to get a product to customers as quickly as possible,” says Fahim Naim, an e-commerce specialist and a former manager at Amazon.

PLACING AN ORDER

Amazon’s website lists about 350 million different items. They include groceries, furniture, clothing, and electronics. Amazon sells some of these products directly. Smaller retailers can also pay Amazon to sell their goods. The products are stored in and shipped from an Amazon warehouse. Seventy-five of these warehouses are located across the country.

What happens when a customer places an Amazon order? Right away, the website sends the order to the closest fulfillment center that stocks the item. These centers are the secret to Amazon’s success, says Miya Knights. She’s a retail analyst who co-wrote the book Amazon: How the World’s Most Relentless Retailer Will Continue to Revolutionize Commerce. She says, “The shipping is so fast because Amazon’s delivery network is so big.” 

To choose the best warehouses for each product, Amazon uses an algorithm. This is a list of rules a computer follows. The algorithm predicts which products people might buy. Say, for example, you purchase toothpaste every two weeks. Amazon’s algorithm will notice that pattern. In time, it will start to prepare for your next purchase. Before you even buy the toothpaste, Amazon will ship that brand to a warehouse near you. “Amazon anticipates as much as it can, using data to try to predict how to get a product to customers as quickly as possible.” says Fahim Naim. He’s an e-commerce specialist and a former manager at Amazon.

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POINT AND CLICK: Once you place your order, an alert is sent to employees at the nearest fulfillment center, telling them where to find the item in the massive warehouse.

PICKED AND PACKED

Hundreds of people work at each of Amazon’s fulfillment centers. Some of these workers are “pickers.” They’re responsible for finding and gathering the correct products out of the millions stocked on warehouse shelves. Each picker uses a handheld scanner to locate items within the fulfillment center, a building which can cover an area the size of 20 football fields. Once the picker finds the correct item, they bring it back to their station, scan it, and place it onto a conveyer belt. The item travels through the warehouse until it reaches workers called “packers.” These employees package items in cardboard boxes and prepare them for delivery.

In 26 out of the 75 fulfillment centers in the U.S., Amazon uses robots to make the process even faster. Robotic arms with claws stock packages, which are stored until someone orders them. When an item is purchased, a boxy, wheeled robot carries an entire shelf of items to a picker’s workstation. There, the employee can select the proper item without having to walk across the warehouse to find it.

For Amazon to deliver its signature speedy service, all the movements within a warehouse need to happen quickly. Workers in New York say they are expected to package 2,000 orders each day—that’s four orders every minute. And every time a picker or packer scans a product, Amazon tracks how fast it’s traveling through the fulfillment center. Workers who move too slowly can get reprimanded.

PICKED AND PACKED

Hundreds of people work at each Amazon fulfillment center. Some workers are “pickers.” Their job is to find and gather the correct products. Millions of items are stocked on warehouse shelves, and the building can cover the area of 20 football fields. To locate items in the fulfillment center, each picker uses a handheld scanner. When pickers find the correct item, they bring it back to their station. Then they scan it and place it onto a conveyer belt. The item travels through the warehouse to reach workers called “packers.” These employees package items in cardboard boxes and prepare them for delivery. 

In 26 of the 75 U.S. fulfillment centers, Amazon uses robots to make the process even faster. Robotic arms with claws stock packages. The items are stored until someone orders them. When an item is purchased, a boxy, wheeled robot goes into action. It carries an entire shelf of items to a picker’s workstation. Then the employee can select the proper item. No one has to walk across the warehouse to find it.

Amazon is known for its speedy service. To deliver it, all the movements within a warehouse need to happen quickly. Workers in New York say they must package 2,000 orders each day. That’s four orders every minute. And when a picker or packer scans a product, Amazon tracks its movement through the fulfillment center. If workers move too slowly, they can get a warning.

AMAZON (WORKER IN MASK); ERIC SLOMANSON/AMAZON (ROBOT)

AUTOMATION STATION: In some warehouses, hundreds of robots zip around, carrying the shelves directly to the pickers.

READY TO SHIP

Once an order has been boxed, a computer scans the box and stamps it with a shipping label. It’s then ready to leave the warehouse. The package is loaded with hundreds of others onto trucks or planes to begin the first leg of its journey.

When Amazon first started, the company relied on services like the U.S. Postal Service to move its goods— and it wasn’t the first company to do so (see The Sears Catalog). But over time, Amazon built up its own transportation network. It includes a fleet of 50 airplanes, 300 semitrucks, 20,000 delivery vans, and even barges.

Someday, Amazon might not even need to use most of these vehicles. “At Amazon, everyone is continuously trying to innovate to do things faster and cheaper,” says Naim. “We’re not that far away from drone delivery.” That’s right, Amazon wants to deliver packages using small, remote-controlled robotic aircraft. The company estimates it will start using this technology within the next five years.

READY TO SHIP

After an order is boxed, a computer scans the box and stamps it with a shipping label. Then it’s ready to leave the warehouse. The package is loaded onto trucks or planes with hundreds of other boxes. The first leg of its journey begins.

At first, Amazon used services like the U.S. Postal Service to move its goods. It wasn’t the first company to do so (see The Sears Catalog). But over time, Amazon built up its own transportation network. It includes 50 airplanes, 300 semitrucks, 20,000 delivery vans, and even barges.

Someday, Amazon might not even need most of these vehicles. “At Amazon, everyone is continuously trying to innovate to do things faster and cheaper,” says Naim. “We’re not that far away from drone delivery.” That’s right. Amazon wants to deliver packages with small, remote-controlled robotic aircraft. The company expects to start using this technology within the next five years.

OUT FOR DELIVERY

Finally, the package arrives at the Amazon sortation center closest to its final destination. From there, a delivery driver picks up shipments to drop off at customers’ individual addresses. Usually, these drivers work for companies like the United Parcel Service (UPS) or local shipping services employed by Amazon. And so, a few days after you’ve made your order, a package arrives at your doorstep, as if by magic.

In reality, though, Amazon’s fast shipping isn’t magic. Behind the scenes, more than 200,000 people are packaging and shipping products in warehouses, plus more than 70,000 drivers are working to get orders to your door. And the number of orders has continued to increase, particularly during the pandemic, putting more strain on workers. That’s led some Amazon employees to ask for higher pay and better working conditions. And as things like one-day and same-day shipping become more widespread, workers are worried that conditions will only get more stressful.

“All of these people are working tirelessly at a tremendous speed,” says Naim. “They deserve appreciation, especially during the Covid-19 pandemic, when they helped us stay safe so that we didn’t have to go into stores."

OUT FOR DELIVERY

Finally, the package arrives at the Amazon sortation center closest to its final stop. A delivery driver picks up shipments from there. The driver drops them off at each customer’s address. These drivers may work for companies like the United Parcel Service (UPS), or Amazon may hire local shipping services. Just a few days after you’ve made your order, a package arrives at your doorstep. It seems like magic. 

But Amazon’s fast shipping isn’t really magic. Behind the scenes, more than 200,000 people are packing and shipping products in warehouses. More than 70,000 drivers are working to get orders to your door. And the number of orders has been growing, especially during the pandemic. That has put more strain on workers. So some Amazon employees are asking for higher pay and better working conditions. Workers are worried that conditions will only get more stressful. That’s because things like one-day and same-day shipping are becoming more common.

“All of these people are working tirelessly at a tremendous speed,” says Naim. “They deserve appreciation, especially during the Covid-19 pandemic, when they helped us stay safe so that we didn’t have to go into stores.”

ARGUMENT FROM EVIDENCE: What are the pros and cons of Amazon’s superfast delivery? What changes would you make to improve it?

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