Amazon Expands Everywhere: From Shopping to Healthcare and Beyond

Amazon is growing its e-commerce business and getting more involved in people’s everyday lives, including areas like robots, healthcare, and entertainment.

Recently, Amazon revealed new technology for its delivery vans that helps speed up deliveries. This system allows the vans to recognize stops and know which packages to drop off. Doug Herrington, the head of Amazon Stores, mentioned that faster deliveries encourage customers to shop more. He also stated that for 2024, Amazon aims to have the fastest Prime delivery speeds worldwide.

Last year, Amazon was able to cut shipping costs by 45 cents per unit, which is a significant savings given its high sales volume. In 2022, Amazon reported profits over $30 billion on revenues of $575 billion, largely driven by its online retail and AWS cloud services.

Analyst Suzy Davidkhanian highlighted Amazon’s “flywheel model,” with Prime membership at its core, which helps keep everything interconnected. Amazon’s diverse businesses include retail, advertising, cloud computing, and streaming services.

However, this model has led to a lawsuit from the US government, accusing Amazon of maintaining an illegal monopoly and harming competition. Amazon profits from data about consumers, using it to target ads and understand what products people might want. This strategy is one reason Amazon spent big on streaming rights for NFL games on Prime Video, aiming to attract sports fans.

Amazon’s digital assistant, Alexa, can order items with voice commands and is even integrated into appliances like washing machines to automatically reorder supplies when needed.

A ‘Pocket Pharmacy’

Amazon is also enhancing its healthcare service, One Medical. For $9 a month, Prime members can have video consultations with healthcare professionals and manage their health records and prescriptions. Amazon Pharmacy aims to deliver prescriptions quickly, with a goal of getting orders to 45% of customers within 24 hours by the end of next year. Hannah McClellan, chief of Amazon Pharmacy, described it as “a pharmacy in your pocket.”

The healthcare market is promising for Amazon, as the company tries to be a one-stop shop for everyone, according to analyst Davidkhanian.

Facing Challenges

Despite facing challenges in physical stores, Amazon continues to seek a successful strategy. Next year, it will open its first “automated micro warehouse” in Pennsylvania, next to a Whole Foods Market, which it bought in 2017. Customers will be able to pick up selected online items filled by robots after shopping for groceries next door.

Amazon is also increasing its use of artificial intelligence in its online store. This technology helps sellers describe and showcase products more effectively. Product labels will be customized for each user, highlighting features like “strawberry flavor” for some shoppers and “gluten-free” for others. Davidkhanian noted that Amazon is focused on helping customers go from researching to purchasing as quickly as possible.

In a logistics center near Nashville, robotic arms efficiently sorted packages for delivery. Amazon’s automation in logistics aims to improve safety and allow workers to focus on more engaging tasks. However, critics argue that the pressure for speed in deliveries makes Amazon warehouses more dangerous than average.