1. Why is an efficient distribution system so important for Amazon’s success? When Jeff Bezos started Amazon, he self-delivered packages to the post office. More than 20 years later, Amazon delivered its first product using unmanned aircraft known as drones. Product delivery took 13 minutes. Amazon’s high-quality service is only made possible through its ever-evolving distribution systems.

Amazon has 70 distribution centers in the United States alone. These distribution systems are optimized to make the best use of space and enable quick retrieval and delivery. When an order is placed, a pick ambassador picks the products from the appropriate aisles and puts them into bins. Packers place products from the bins into appropriate boxes, which are then sorted, sent through chutes, and packed onto trucks for delivery. The efficiency of Amazon’s distribution centers is key toward ensuring fast delivery for the consumer.

To remain competitive, Amazon’s distribution strategies are constantly evolving toward even faster delivery. For instance, Amazon Prime uses two-day or same-day delivery, movie streaming, and online access to books to attract members. Today more than half of Amazon’s customers are Amazon Prime members.

However, Amazon’s most daring distribution strategy is to sidestep the postal service altogether. Amazon plans to use drones to ship orders to customers within a half-hour period! It is testing its drone-based transportation network in the United Kingdom. Although they will face many challenges, Amazon’s drones could be the next evolution of product distribution.