Amazon implements cost reduction and efficiency enhancement? Strengthening logistics service plan
Amazon strengthens logistics services by implementing cost reduction and efficiency enhancements
After experiencing layoffs and expansion plans, Amazon has continuously optimized its logistics services as an important measure to reduce costs and increase efficiency. In the past two years, due to the surge in consumer demand, Amazon has continuously expanded its warehouses and increased recruitment. The scale of its fulfillment network has almost doubled. However, now that consumer demand is declining, Amazon has taken measures such as stopping the construction of new warehouses, leasing warehouses, and large-scale layoffs to reduce losses, and has stated that layoffs have not affected its expansion plans.
Recently, Amazon announced that it is developing its own delivery network, adjusted the ranking of website search results, and displayed products that are closest to the warehouse location at the top of the search results. This can improve delivery speed and reduce costs. Amazon has comprehensively reformed its logistics network to shorten the transportation distance of packages and speed up delivery.
As consumer demand slows down, Amazon and other online retailers are working hard to reduce the cost of delivery and returns. After experiencing a period of explosive growth, Amazon is striving to reduce costs, and the company has also taken multiple measures to reduce the delivery-related costs of the entire company.
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As the cost of platform logistics decreases, the increase in logistics costs for third-party sellers may be alleviated. Currently, the global logistics cost of Amazon has slowed down. This is undoubtedly good news for sellers, as they can reduce their concerns about the rising logistics costs.
However, this adjustment of Amazon’s logistics services also brings certain impacts to sellers. Large sellers with inventory in various regions will gain more natural search traffic, which further squeezes the space for small sellers to obtain natural traffic. Therefore, small and medium-sized sellers need to adjust their operating strategies, improve product competitiveness, and seize natural traffic as much as possible.
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