How Amazon Managed to Overcome The Coronavirus Epidemic

 

How Amazon Dealt With The Coronavirus Outbreak And Emerged Stronger

Not only has the coronavirus epidemic killed over a million individuals around the world. It has also wreaked havoc on the global economy, bringing industries to a halt, causing enormous layoffs, and has exacerbated the slow-motion downfall of already failing department store chains in the retail sector.

One of the few exceptions is Amazon

At the height of the coronavirus crisis, the e-commerce behemoth became the default store and necessary service for many consumers, thanks to its seemingly unlimited selection and drive to give convenience and low pricing.

Faced with store closures and empty shelves, buyers went to Amazon for supplies like hand sanitizer, face masks, and disinfectants to protect themselves from Covid-19. They stocked up on groceries and home items, then ordered office materials and workout equipment as the crisis progressed so they could acclimatize to remaining indoors.

Amazon set sales records in the second quarter thanks to a surge in online orders. The company then invested billions on coronavirus-related initiatives such as worker safety equipment and its internal testing program, Project Ultraviolet.

Amazon continued to hire despite widespread unemployment and economic turbulence in the United States. Between March and mid-April, the business hired around 175,000 new warehouses and delivery personnel to help fulfill consumer orders. In the three months ending June 30, Amazon hired 36,400 new employees, boosting its total headcount to 876,800, up 34% year over year.

Amazon's pandemic-fueled growth isn't anticipated to slow down anytime soon, especially as it gears up for Prime Day in October and the holidays that follow. According to analysts polled by FactSet, Amazon is likely to surpass $100 billion in quarterly revenue for the first time ever in the fourth quarter.

The most difficult situation we've ever encountered

It wasn't inevitable that Amazon would succeed while many other businesses faltered.

The sudden influx of orders took Amazon off guard at first. The corporation struggled to meet its lauded two-day delivery timeframe, which is included in the $119 yearly membership price for Prime subscribers.

It immediately ran out of high-demand items like hand sanitizer and paper towels, battled price gouging, and hurried to change operations inside its warehouses to keep employees safe without slowing down production.

The coronavirus upended Amazon's operations, according to CEO Jeff Bezos, who recognized this early in the pandemic. In April, he commented, "The current crisis is showcasing the adaptability and endurance of Amazon's business like never before, but it's also the most difficult time we've ever faced."

Bezos said his focus had shifted to Covid-19, rather than longer-term projects and experimental endeavors like his rocket company Blue Origin. Bezos and a number of Amazon executives met on a daily basis to address inventory issues and discuss the newest coronavirus updates.

Global firms like Amazon are used to dealing with supply chain interruptions, but not this one. Even Amazon, with its vast end-to-end logistics network encompassing warehouses, planes, trucks, and vans, couldn't keep things running smoothly.

“The first place where [the coronavirus] hit hard was their supply chain,” said Guru Hariharan, a former Amazon executive and CEO of CommerceIQ. “Amazon’s holy grail or crown jewel is the supply chain. It’s still yet to sort of come to normalcy.”

Because hand sanitizer and paper towels were in such great demand, Amazon advised its millions of third-party merchants that they would take priority in its warehouses. Amazon started processing orders for non-essentials in April, but only in limited amounts.

Amazon is still attempting to recover from its inventory disruptions months later. According to Juozas Kaziukenas, who leads the e-commerce research business Marketplace Pulse, there was a backlog of inbound shipments once it began permitting nonessentials. Due to a lack of room in its facilities, the corporation continues to limit the number of products that sellers can store in its U.S. warehouses.

“I think Amazon’s fulfillment is its greatest asset and strength - it is the most sophisticated and efficient e-commerce fulfillment operation at least in the US - but at the same time, perhaps inherently, it is also Amazon’s single point of failure,” Kaziukenas said. “Any disruption to its fulfillment operations affects Amazon and its marketplace.”

Conditions of employment

Throughout the pandemic, Amazon has also been the subject of intense public attention for its treatment of warehouse workers. As they proceeded to pick, pack, and ship goods at a breakneck rate, warehouse workers complained that Amazon didn't do enough to protect them from the virus. Amazon has been urged to take action by lawmakers, regulators, worker rights organizations, and even some of its own workers.

To prevent viral transmission, the company said it adopted more than 150 process changes in its warehouses, ranging from improved cleaning and social distancing measures to mask requirements. It also increased testing for the coronavirus among its employees, with almost a dozen warehouses testing workers in July.

Despite these advances, new instances of the coronavirus continue to be reported in Amazon facilities across the United States. Covid-19 has claimed the lives of at least eight Amazon employees.

Tensions among warehouse workers have subsided since the pandemic's peak, but attorneys general in New York and California continue to investigate the company's labor violations.

Amazon is also at risk of fresh coronavirus outbreaks in the coming months, highlighting Bezos' desire to undergo "frequent testing of all Amazonians."

Thoughts: Amazon has reaped the full benefits of the coronavirus thanks to its products and business model.

Even if the coronavirus dies out, its new clients will assure its supremacy for the next few years.

So, if you're looking to start a business, Amazon is the place to be. Take advantage of Amazon Courses to assist and guide you on your path. Source