Amazon's Future Layout: Logistics Center Besieged Urban Consumption

The times issued a commentary on Wednesday, saying that Amazon is playing a big game in the next round. It has built a seemingly inconspicuous but massive logistics center near every us first tier city, which provides a strong guarantee for the growing e-commerce market and increasingly demanding express service.

Amazon's development strategy is expensive.

The company has to spend billions of dollars every year to improve and build facilities.

But bold style and scale will only further consolidate Amazon's absolute hegemony in the global retail market in the future.

For investors, the most important thing is that we must realize that Amazon today is totally different from Amazon, which was five years ago.

In 2009,

There are only 18 logistics centers running in the second tier cities, such as Washington state, Indiana, Kentucky, Kansas and Delaware.

But today, Amazon has nearly 100 giant logistics centers scattered across the country, covering almost all major population gathering cities.

Amazon logistics center network coverage area growth map

Expansion has brought substantial advantages to Amazon, and the company has grasped the growth opportunities of every city's retail market.

And one of the most important points is that Amazon has removed a major obstacle to online consumption: the immediacy of distribution.

This advantage is thanks to Amazon's constant new construction since 2012.

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The company has now been able to deliver 12 orders on the same day in 12 of the 14 super cities in the United States, including New York, Losangeles and Chicago.

That is to say, 31% of the population in the United States can buy goods in Amazon in the morning and receive packages before the night.

"As our logistics center is getting closer to consumers, we can see that orders are on the increase."

Amazon CFO Tom Skudak (Tom Szkutak) said at the earnings conference last year.

The expansion strategy also helped Amazon to lay a foundation for the grocery market to enter the market value of US $600 billion a year.

Amazon has coveted the market for quite some time.

In terms of market value, groceries are next to the $650 billion a year in the department store market, and are ranked second in the retail market.

At present, Amazon has launched its grocery Service on the same day in its headquarters in the city of Seattle, as well as in four cities of San Francisco, Losangeles and New York.

Amazon officials say the company is launching this service as quickly as possible, but is also careful to maximize consumer experience without sacrificing quality and convenience.

Amazon's huge infrastructure will also help the company seize the share of sales growth of valuable and large commodities such as televisions, refrigerators and washing machines.

For example, in 2013, Amazon built a special logistics center specially designed for consumers to select, package and pport large objects such as rubber boats, televisions and so on, especially in Texas and Florida.

In view of the speed and scale advantage of Amazon's expansion of the logistics center network, the retail market is bound to usher in a storm in the future.

This will be Ye Hengsao from the second half of the last century in the WAL-MART.

After that, there was never a revolution.

This time, the scale and impact will be bigger and deeper.

The emergence of WAL-MART "merely" ended the fate of traditional small retailers and general department stores, but Amazon's ambitions were not limited.

The company is going to become a "super shop without selling", and in its pursuit of this goal, a large number of retailers will eventually become victims.

Besides, in the era of e-commerce, the disadvantages of traditional entity retailers like WAL-MART have been exposed.

Now it is hard to imagine how this business model can be changed so as to further reduce costs while improving consumer convenience.

All in all, throughout Amazon's strategy of "siege" urban consumption with powerful logistics centers, it is not difficult to believe that Amazon will be an airtight empire in the future, and its impact may extend to generations.