Trucker shortages, ships waiting at ports, damaged highways, and rail lines are causing panic for retailers as the holiday shopping season starts. However, experts say Amazon’s logistics empire and predictive analytics will allow it to avoid the worst of it. A new video by CNBC, looks at what Amazon has done to prepare including: leasing long-haul planes to get goods from China to the U.S. faster, making its own containers, and chartering private cargo vessels.
While Amazon is working hard to get items in stock, it is not immune to supply chain disruption. There has been a 14% increase in out-of-stock items since the start of 2021, and prices have increased an average of 25% this year.
Amazon has been investing billions of dollars to control more parts of the shipping journey. This reduces how much it has to pay other shipping companies, while also making Amazon less vulnerable to external shipping delays. Amazon is now shipping 72% of its own packages compared to 47% in 2019.
For the 2021 holiday season Amazon is looking to hire 150,000 seasonal workers. This is 50,000 more than the company hired in 2020. Amazon has also opened 250 additional facilities in 2021 to keep up with demand for goods.
Watch the full video on CNBC’s YouTube channel.