To solve the peak season problem, Amazon invested 4 billion in logistics costs!

The peak season has become a highlight moment for platforms and sellers to see explosive sales. However, due to the multiple problems facing the cross-border e-commerce industry this year, the early preparations were not as smooth as everyone imagined.

Many retailers abroad are facing labor shortages and delayed delivery of goods, and Amazon is no exception. According to foreign media reports, Amazon has invested $4 billion in logistics costs to cope with the holiday shopping season .

The report said that in early November, 181 containers bearing the Amazon logo docked at the Port of Everett. In addition to the rolled steel ( some were empty ), the rest were filled with laptop cases, Radio Flyer vans, Peppa Pig puppets, artificial Christmas trees and dozens of other items shipped directly from China , according to customs data. This move was to keep the supply of hot-selling products during the peak season sufficient.

Amazon has also stopped at Houston , and chartered Olive Bay to ship its cargo to a relatively quiet port, bypassing the congested Port of Los Angeles and other ports .

In addition to the above measures, Amazon recently hired 150,000 seasonal workers to pick, pack and deliver items. In order to ensure the timely delivery of goods, Amazon is also sending half-full trucks for delivery. Despite the surge in container and shipping costs, in order to ensure the normal transportation of goods, Amazon has simplified the process and eliminated many middlemen.

Currently, Amazon's logistics costs have reached $4 billion , which is not a small amount. Some people say that the estimated $4 billion in logistics costs may cause Amazon to lose profits in the three most important months of the year , but given Amazon's leading position in the e-commerce platform, the peak season is also an important opportunity for it to widen the gap with its competitors, and it will naturally not let it go easily.

Some say that if Amazon can deliver goods on time during peak season, it will be thanks to its chartered ships, chartered planes, hundreds of local warehouses, and thousands of employees and contractors along the way.

Amazon has ostensibly solved the trans-Pacific shipping problem, but it still faces one of the worst labor shortages in the U.S. in half a century, and the final outcome won’t be known until the end of the peak season.

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