The storyline of 2020 for e-commerce was one of high demand overwhelming logistics and fulfillment capacity. Amazon wasn’t alone here. UPS executives spoke of a similar struggle in their earnings call this week. An important part of returning to normal fulfillment speeds, Amazon executives said, is capacity expansion.
Capacity also allows Amazon to process a larger percentage of shipments through its internal network. More than half of Amazon’s packages are handled via Amazon Logistics, Dave Fildes, director of investor relations at Amazon, said on the call.