Amazon builds new warehouses
September 5 , 2013
Amazon's low prices have also made traditional retailers nervous. However, the fact that it has now opened new warehouses in order to cut shipping times should make them worry even more.
The company already has 40 fulfillment centers around the United States, which helps it provide quick delivery. "Prime" subscribers are at even a greater advantage since they are not charged for shipping and are delivered items in practically no time- two days.
With Amazon building another five centers this year, the whole delivery process is expected to become even faster. The warehouses are supposed to be close to many major cities but the locations haven't been yet disclosed.
Joe Perrotto, the owner of Power Equipment Plus said Amazon will "have the convenience and immediacy of retail". He added, "Ultimately, it's going to erode our profitability as we try to offer a price advantage to counter their convenience advantage."
The company hasn't commented on its impact over businesses that are smaller.