Thanks to a mountain of data and massive investments, Amazon is trying to optimize all its activities down to the smallest detail, from robots to health, with the stated goal of becoming indispensable in the daily lives of more and more consumers.
On Wednesday, the American group presented its latest developments, including a new computer system, VAPR, which will gradually be installed in delivery trucks and saves “30 minutes per tour”.
“The van recognizes the stops and knows which packages are affected,” explained Doug Herrington, head of Amazon stores. The driver “goes to the back and takes the packages illuminated” with a green circle by a projector, without wasting time finding the right labels.
The gain might seem anecdotal, but not for a company that measures its victories in minutes and cents saved.
“When we deliver faster, customers buy more,” said Doug Herrington.
And when the total cost of delivery decreases, “our systems can accommodate more products, our selection increases and so do traffic and sales.”
The manager welcomed the fact that this cost had fallen “like never before” in 2023, by 45 cents per unit, while deliveries for Prime subscribers (loyalty program) will break new speed records this year.
– “Platform for everything” –
In 2023, Amazon will generate more than $30 billion in profits from its $575 billion in turnover (+12% year-on-year), thanks to its essential e-commerce platform and its AWS branch, the world number one. of the cloud.
The other side of the coin is that the company, founded 30 years ago, is the subject of various investigations and prosecutions for illegal monopoly or unfair commercial practices.
But it continues to expand its realm, from voice assistants (Alexa) to drones.
“The Prime subscription is at the heart of the machine, it connects all activities together (…) with user data as the driving force,” comments Suzy Davidkhanian, analyst at eMarketer.
She cites as an example the broadcast of very expensive NFL (American football league) matches on Prime Video.
“Now they know who watches football. So they can target fans with certain offers and sell more ads and products.”
Amazon also presented improvements on Wednesday for One Medical, its general medicine service, and Amazon Pharmacy, which must deliver prescription drugs in less than 24 hours to 45% of its American customers by the end of 2025.
Officials highlighted the firm’s ability to offer an alternative to the “failing” American health system.
“We’re building a modern pharmacy that fits in your pocket,” said Hannah McClellan, vice president of Amazon Pharmacy.
“It’s a lucrative business,” notes Suzy Davidkhanian, but above all it shows that Amazon is trying “to be the platform that has everything, for everyone.”
– Optimisation –
On the physical store side, Amazon has experienced several setbacks. But its teams continue to look for the formula that will establish the brand for all household shopping.
The company plans to open its first “automated micro warehouse” next year, backed by a Whole Foods Market (organic supermarkets purchased in 2017), in Pennsylvania.
Consumers will be able to simultaneously choose their fresh products and place an order online, prepared by robots to collect it at the exit.
On Amazon.com, AI will increasingly advise sellers and customers. New tools allow third-party merchants to easily generate descriptions and illustrative images.
And the product titles will change depending on the user, to display terms likely to catch their attention (like “strawberry flavor” for some and “gluten-free” for others).
“Everything is optimized to remove any obstacles to purchasing, get to know their customers better and create a system from which it becomes difficult to escape,” summarizes Suzy Davidkhanian.
At the MQY1 logistics center in the southern United States, robotic arms deftly distribute packages into carts that autonomous robots on wheels then transport to trucks, avoiding humans in their path.
“This frees up employees to do more interesting tasks,” assured Julie Mitchell, a manager at Amazon Robotics.
The company, which claims to be “the best employer on earth”, also boasts safety gains for workers.
But associations accuse its warehouses of being more dangerous than those of competitors. And the end of teleworking for engineers and administrative staff, announced in September, is making people cringe.
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