Amazon is taking the next step in expanding the transportation and delivery side of its e-commerce business, and lessening its reliance on carriers such as FedEx and UPS. The Seattle-based company announced yesterday it plans to build an air cargo hub for its growing fleet of aircraft. The facility, expected to create more than 2,000 jobs, will be located in Hebron, Kentucky at the Cincinnati/Northern Kentucky Airport. According to insiders, Amazon aims to transport and deliver its own packages and eventually branch out to other retailers while competing with traditional carriers. Continue reading Amazon Unveils Plans to Build New Air Cargo Hub in Kentucky

Amazon experienced its “best ever” holiday shopping season, with its voice-controlled Echo and Echo Dot smart speakers leading sales, followed by the Fire TV Stick and $50 Amazon Fire tablet. Sales of the Alexa-enabled devices were nine times higher than sales during the previous year’s holiday season and the company had trouble keeping them in stock. Amazon Prime members reportedly purchased more than one billion items over the holiday season. The online retailer said its customers purchased enough 4K TVs to scale Mount Everest more than nine times. Among the top sellers included Samsung’s 32-inch smart LED TV and Avera’s 32-inch LED TV. Continue reading Holiday Shoppers Buy Record Number of Products on Amazon

Amazon chief executive Jeff Bezos reports that, on Dec. 7, the company made its first commercial drone delivery — of an Amazon Fire streaming device and popcorn — to an Amazon shopper in Cambridgeshire, England. The drone took off from a nearby Amazon warehouse and flew two miles in approximately 13 minutes. Amazon will now test drone deliveries in that country with two more customers near Cambridge, where it has a drone testing facility. The company hopes to expand the trial to up to dozens of people in the next months. Continue reading Amazon Makes its First Commercial Drone Delivery in the UK

Amazon launched its global Prime Video service, pricing it under Netflix to compete in the subscription-video arena. This year, according to Cowen & Co., Amazon is on track to spend more than $3 billion on Prime Video content, compared with $6 billion by Netflix. In addition to its Amazon Studios originals, the program line-up for its international Prime Video offering will include hundreds of movies and TV shows, varying by country. Licensed movies include “Jurassic Park,” “Pulp Fiction,” “Gone Girl” and others. Continue reading Amazon’s Global Push Creates Direct Competition with Netflix

Walmart told its investors that it was opening fewer brick-and-mortar stores in favor of investing in online operations, a strategy that was initiated when Walmart chief executive Doug McMillon paid about $3.3 billion for e-commerce startup Jet.com. That company’s founder, Marc Lore, will lead the initiative. The company predicts online sales will grow 20 percent to 30 percent in the next three years. Still, it’s a risky gambit since Amazon is increasing its dominance in the U.S. consumer space. Continue reading Walmart to Ramp Up Online Operation, Google Opens Pop-Up

After two years of working on the technology, Verizon will soon connect drones to its wireless network, with drone data plans starting at $25 a month for 1 gigabyte of data and $80 for 10 gigabytes, similar to what consumers are already paying for data. The company just demonstrated the technology with drone manufacturer American Aerospace Technologies at Cape May, New Jersey. The new drone data plan will allow consumers to connect their drones to the Internet, streaming videos and photos to earth. Continue reading Verizon Plans to Launch New Internet Data Service for Drones

In North America and Europe, Amazon, DHL and UPS are all getting ready to launch fleets of drones to deliver packages. The United Kingdom most likely will be the first country to put unmanned vehicle technology into action because the country’s Civil Aviation Authority (CAA) can address issues without having to adhere to the schedule of an outside authority such as the U.S. Congress. Issues include allowing drones to safely fly out of an operator’s sight and managing multiple airborne drones. Continue reading The UK Is Winning the Race to Launch Legal Drone Deliveries

UPS has begun testing emergency drone deliveries with Massachusetts-based CyPhy Works, a drone company that the shipping giant invested in last year. The companies tested the 3-mile delivery of an asthma inhaler last week. “The CyPhy-UPS drone, called the Persistent Aerial Reconnaissance and Communications drone, or PARC for short, was autonomous during the flight and navigated by GPS,” reports Digital Trends. The drone features “a high-resolution camera with thermal imaging and target tracking abilities, and two GPS units and multiple rotors, antenna and communications systems.” Continue reading UPS Performs Mock Package Delivery to Test Drive New Drone

In its biggest bid yet to compete more directly with Amazon, Arkansas-based Walmart is acquiring e-commerce startup Jet.com for $3.3 billion ($3 billion in cash and $300 million in shares to be paid over time). Walmart has been busy expanding its online operation, and the Jet.com deal provides it with a shopping site that is adding 400,000 consumers monthly and has already reached a $1 billion gross merchandise run rate. Store-based businesses such as Costco, Target and Walmart have been looking for effective ways to contend with Amazon’s successful online model. Continue reading Walmart to Purchase Jet.com in Bid to Compete with Amazon

Amazon announced its fifth consecutive quarterly profit yesterday, and its third consecutive record-setting profit. Revenue increased 31 percent; sales rose to $30.4 billion from $23.19 billion. The company’s cloud computing division, Amazon Web Services, accounted for an impressive 56 percent of Amazon’s operating income, and it grew 58 percent in the last quarter. “The results show Amazon moving toward investors’ long-held hope of consistent profitability after a lengthy period of heavy investments and quarterly losses,” notes The Wall Street Journal. “Overall, Amazon posted a second-quarter $857 million profit, or $1.78 a share, compared with $92 million, or 19 cents a share, a year earlier.” Continue reading Amazon Posts Record Profit and Significant Growth for AWS

According to Amazon, product orders made during its second annual Prime Day surpassed last year’s sales by more than 60 percent worldwide (50 percent in the U.S.), while third-party vendors experiencing a 30 percent surge. Amazon says it tripled sales of its own devices in the U.S.; the Fire TV stick was the most popular Amazon device sold during Tuesday’s event. Prime Day debuted last year to commemorate the company’s 20th anniversary and encourage consumers to sign up for its Prime membership service, which offers perks such as two-day shipping and access to Prime Video and Prime Music. Continue reading Prime Day Experiences Sales Surge, Big Day for Fire TV Stick

Amazon announced that its voice-controlled digital assistant Alexa will have the ability to order “tens of millions” of products. “Alexa — which is built into Amazon’s Wi-Fi-connected Echo and Tap speakers and its Fire TV set-top box — won’t be able to place an order for everything in Amazon’s online store and shopping apps,” reports The Wall Street Journal, but “will have access to all of the products in Amazon’s Prime shipping program.” The company is “adding more products every day into that Prime product wheelhouse,” said an Amazon spokeswoman. “We really want to see how customers are using it and get their feedback on how it can be improved. We’ll continue to figure out expansion as time goes on.” Continue reading Consumers Can Talk with Alexa to Order Products on Amazon

Although rumors are swirling that Amazon plans to open a global shipping and logistics operation to compete with both FedEx and United Parcel Service, the company’s chief financial officer Brian Olsavsky said that Amazon is merely looking to supplement its shipping partners during busy periods such as Christmas. But Amazon might actually have more ambitious plans than Olsavsky is willing to admit. A 2013 report targeting Amazon senior management actually proposes a major expansion of its Fulfillment By Amazon. Continue reading Amazon is Quietly Building “One-Click-Ship” Global Delivery Biz

Online shoppers are now expecting their purchases to be delivered faster and cheaper, and online retailers are scrambling to meet the delivery demands of today’s consumers. According to a Deloitte survey, only 18 percent consider the standard five- to seven-day shipping “fast,” while more than 90 percent consider same-day to two-day delivery “fast.” Many shoppers aren’t willing to pay more for fast delivery either. Amazon Prime’s two-day shipping service set a new standard for retailers. Continue reading Online Retailers Follow Amazon Prime’s Lead in Fast Delivery

Amazon is looking to expand its services, particularly online grocery shopping and video streaming, in Europe this year. The company plans to add several thousand new jobs in Europe to help expand its operations. Amazon has already found success in its online grocery shopping and delivery service, Amazon Fresh, in the United Kingdom, and will likely use that model in other major cities. Amazon’s online sales continue to grow at the same pace as the online sales rate across the region. Continue reading Amazon Plans to Expand Online Grocery Shopping in Europe