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What Is The Next Big Trend in Logistics?

Business

Logistics is a term that dominates a vital part in the business world and market. There would be no stock and supply to the market if logistics did not exist as logistics are defined as the process of transporting goods from the company to the consumer, or from the manufacturer/retailer to the market. Seeing this, it is not hard to see that the trends of logistics keep changing and advancing with time as better transportation and delivery services come out and markets all over the world advance ahead too. One of the biggest – possible the next big trend – in logistics is the Amazon Drone Courier.

Drone

What are Amazon Drone Couriers?

Amazon drone couriers are a new step in the “air” transportation of goods. However, they are drones, which means they are controlled externally and can deliver products to consumers quicker than any plane can. These drones have extremely fast (better than one-day delivery even), cut costs of delivery labor, and have numerous other benefits.

The Birth of Amazon Drone Couriers

The question arises, “Why did Amazon choose to bring out such a delivery method?” Well, are good reasons behind the idea and the CEO of Amazon, Jeff Bezos, did not just introduce the concept to excite the market and attract more customers. The main reason is competition. Amazon was high in its game when it came to one-day delivery but now many other stores and retailers offer one-day delivery so Amazon is not the only quick delivery service around. To stay ahead of the game, Bezos introduced courier drones – better than one-day delivery and can personally drop items to people’s doorsteps within an hour or so. Jeff Bezos definitely got the attention he wanted – the idea hit a high hype and looks to become the next big trend in logistics.

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Another reason that lies behind the idea of these drones is cost. Amazon wanted to stay ahead of the competition, providing hyper fast delivery services. The only way to do that was to start planting fulfillment warehouses and sorting centers all over so that most of their orders are close enough to get the items delivered within hours, which is a huge expense and would also require more costs on employees. A much cheaper alternative to this expensive plan was courier drones and the Amazon CEO jumped at it – they would cost as much as planting warehouses and sorting centers, would not require any employees and can get the products to the consumers easily and quickly. Just in the last three year, Amazon has spent a whopping $8.8 billion SOLELY on shipping. Yes, they charge high shipping charges ($8.99 per delivery + 99 cents of each delivered product), but that is still a high sum of money. If drones are the next big thing that can save delivery costs, will Amazon lower delivery costs for consumer’s remains to be answered?If Amazon starts charging less delivery charges than the expensive $8.99 price, then that sure would attract a lot more customers. Whether they do or not are still a question but it is not doubt that Amazon sure has got the best card in logistics right now.