Amazon Shipping BLOG
Small tweaks, big impact: How innovation and AI are shaping the future of e-commerce logistics
Innovation offers retailers unlimited opportunities to streamline logistics, cut costs, and enhance the end-customer experience. It’s a hot topic in the industry, with 88% of shippers agreeing their organisation wants to be at the forefront of the latest innovations (Amazon Shipping Internal Research, 2024). At Amazon, that’s why innovation starts with what our customers need, and we work backwards from there. Since 2019, we’ve invested over €700 million in AI and robotics through our European Operations Innovations Lab. These advancements make deliveries more reliable, reduce delays, enhance employee safety, and create a stronger, more resilient network.
But what exactly do we mean by innovation? At its core, it’s about more than just challenging the status quo – it’s about reimagining processes, exploring new possibilities, using latest technology and tools to drive efficient change and finding better ways to create value – a journey fuelled by curiosity and a drive for continuous progress.
But what exactly do we mean by innovation? At its core, it’s about more than just challenging the status quo – it’s about reimagining processes, exploring new possibilities, using latest technology and tools to drive efficient change and finding better ways to create value – a journey fuelled by curiosity and a drive for continuous progress.
Everyday gamechangers
To understand how innovation manifests daily for e-commerce retailers, we commissioned a report with B2B International exploring innovation in parcel delivery across the UK, France, Italy, and Spain. B2B International spoke to retailers shipping more than 1,000 parcels a day, spanning key industries such as fashion, health and beauty, and electronics.
One of the most transformative innovations in e-commerce logistics has been the advancement of AI and robotics. But innovation isn’t all about revolutionary breakthroughs. We uncovered a key insight: The most impactful innovations are often the everyday gamechangers – the small tweaks to current processes that make a big difference. These incremental innovations empower retailers to elevate their customers' delivery experience while achieving their own operational efficiencies.
One of the most transformative innovations in e-commerce logistics has been the advancement of AI and robotics. But innovation isn’t all about revolutionary breakthroughs. We uncovered a key insight: The most impactful innovations are often the everyday gamechangers – the small tweaks to current processes that make a big difference. These incremental innovations empower retailers to elevate their customers' delivery experience while achieving their own operational efficiencies.
What drives retailers to innovate?
B2B International’s research found three key drivers of change for retailers:
- Evolving customer expectations: Consumers increasingly expect more from their delivery experience such as faster delivery speeds, more convenient delivery options, and visibility of their parcel’s journey through tracking technology.
- Advances in technology: Advancements, such as robotics, AI, and data analytics, are driving innovation and improvements in productivity, efficiency, employee safety, and customer experience for e-commerce retailers. But the constant push for faster delivery speeds also presents challenges that require parallel innovations to address.
- Sustainability targets: Retailers are actively seeking innovative solutions to address environmental challenges in shipping, such as efforts to reduce packaging waste and carbon emissions.
Innovation in action
The report also highlights some of the ways Amazon Shipping is driving innovation for retailers through a Q&A interview with Amazon Shipping Director, Ines van Gennip, covering topics such as:
1. Routing technology: Improving delivery times, reduce delays, and improve peak reliability.
2. Sort centre robotics: Transport packages quickly and efficiently, reducing handling times and ensuring packages are sorted more accurately, ultimately improving overall delivery speeds.
2. Predictive maintenance: Anticipating equipment failures, reducing downtime and minimising disruptions.
1. Routing technology: Improving delivery times, reduce delays, and improve peak reliability.
2. Sort centre robotics: Transport packages quickly and efficiently, reducing handling times and ensuring packages are sorted more accurately, ultimately improving overall delivery speeds.
2. Predictive maintenance: Anticipating equipment failures, reducing downtime and minimising disruptions.
Read the report
To explore how innovation is manifesting in day-to-day delivery, download the full report, "Everyday Gamechangers: Exploring the Step-by-Step Approach to Innovation in Shipping", and learn how your business can stay ahead of the curve.
Download the report now to explore how innovation is reshaping the logistics landscape.
Download the report now to explore how innovation is reshaping the logistics landscape.
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