Logistics With Amazon in the U.S. Market

Amazon is once again investing in logistics in the United States, this time with a significant difference compared to its first round of investments in warehouses and logistics centers made a few years ago.

After the pause in its expansion caused by the pandemic, Amazon is once again purchasing industrial properties, adding mega distribution centers in the USA, and smaller logistics centers for sorting and delivering orders to the US market.

Amazon is adding these sites to its logistics infrastructure in the United States while simultaneously revising its delivery strategy to distribute products across nine operational regions rather than relying on a wide but centralized network of warehouses.

The idea is to bring products closer to consumers to speed up deliveries in America, a push driven by competition with Walmart as well as new competitors Shein and Temu. Walmart is trying to leverage its vast network of 4,600 stores as a logistical advantage, fulfilling more online orders at its distribution centers. Walmart has stores within 32 kilometers of 90% of American consumers. Amazon's renewed expansion effort in the logistics structure in America signals that the competition to win and retain American consumers is now a battle on the real estate and logistics front.

• Amazon is opening a 340,000 square meter distribution center in Baton Rouge, Louisiana.
• Temu's owner, PDD Holdings, has reported a 131% increase in sales in the last quarter, reaching $12.1 billion, and a 246% increase in net profit compared to the previous quarter.