Amazon Logistics achieves historic growth with 50% annual growth

Amazon Logistics ( AMZL ) footprint grew by about 50% in 2020. At the same time , Amazon almost doubled its headcount, number of facilities, and logistics square footage in 2020. In 2021 , Amazon also plans to double its truck fleet.

According to the latest data, in the United States alone, Amazon Prime has 150 million members, and globally this number has exceeded 200 million, and the renewal rate of members is also very high . In the past year under the epidemic , the number of Amazon Prime members has grown faster than in the past few years .

CIRP survey data shows that as of March 31, 2021, Prime's 30-day conversion rate was 69% . The main reason for such a high conversion rate for both new and renewed members is Amazon Prime 's shipping service - free and fast.

Amazon has historically delivered goods through owner-operators and small trucking companies, but since the pandemic , it has had to obtain transportation capacity from large trucking companies to cope with the rapidly growing e-commerce demand . For Amazon, this solution is not cheap.

So Amazon is trying a new solution - more than doubling the size of its own trucking fleet by the end of the year . Amazon plans to increase the number of small trucking companies used exclusively to transport goods for Amazon in the U.S. from 100 currently to 285 by the end of the year , according to an internal document first reported by The Information .

Amazon is also implementing an incubation program to train hundreds of people to start their own freight operations, specifically for Amazon. The proposal is called " Amazon Freight Partners , " and if successful, Amazon would have between 2,280 and 5,700 Amazon-branded tractors and 8,550 and 14,250 truck drivers on U.S. roads , with a clear commitment to complete construction by the end of the year , capable of hauling Amazon's freight.  

As a giant company, Amazon's actions are always seen as hot topics by the media, but reports of "Amazon has opened a new warehouse somewhere" appear almost every month or even every week, and people no longer find it surprising. But looking back, we can see how far Amazon has come in deploying its own logistics.

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