Amazon has taken to the skies. Earlier today, the online retailer announced that it has leased twenty cargo planes from Air Transport Services Group (ATSG) of Wilmington, Ohio.
“These planes provide critical capacity expansion to support the growth of Prime in the U.S. Planes provide an additional dedicated transportation method connecting Earth’s largest selection to customers from coast to coast. At our scale, supporting growth requires adding some of our own logistics capabilities,” said spokeswoman Kelly Cheeseman.
Currently, the company uses a variety of services to deliver its products—the USPS, UPS, FedEx—the planes will serve as yet another addition to this preexisting network. The innovation will most likely cut down on Amazon shipping costs because the company will no longer be forced to rely on intermediary transport companies to move goods across the country quickly.
Amazon’s foray into the world of air freight should come as no surprise. Over the past few years, the company has overtaken most major retailers in its sales volume, including Walmart. This past summer, Amazon’s announced that it would host “Prime Day” (24 hours of site wide sales) in celebration of its 20th anniversary. So popular was the event that it provoked Walmart to campaign against Amazon with a promise of 50 days of sales on its own website.
Even more telling of the ascent of online retailers is Sports Authority’s recent financial troubles. Scarcity of foot traffic in its stores and the continual consumers’ migration to online retailers has forced the company to announce closures and now possibly a bankruptcy announcement.
There’s no doubt about it, Amazon’s cargo planes mark another significant climb in the ascent of online retail.
Sourcing via USA Today.