With the current heat on the amazon forest one may get confused, though that’s a whole other topic to discuss. A heated discussion though may we add but not for this post.
The Amazon effect however, refers to the monster e-commerce website amazon.com and the effect it has had on the retail industry for the past 20 years. Through the domination of online sales and distribution to now gradually expanding and overtaking the shipping industry.
The most obvious effect that the amazon effect has on shipping is the extreme increase. Particularly in the trucking industry.
The trucking industry being the most affected as with the united states being such a large country. The most efficient way to get around is by road, from warehouse to warehouse throughout the entire nation.
Truck drivers being one of the few jobs that haven’t been overtaken by robots, still require people to drive them thus follows an increase in the truck driver profession.
“Truck driver” was the most common occupation in only nine states in 1978. Today, it’s the most common occupation in 29 states. Employment of truck drivers is expected to grow 11% from 2012-2022.
The Truck driving profession is immune to globalization and automation since you can’t outsource truck driving to cheaper labor countries, and robots can’t yet drive cars; jobs that are needed everywhere have also moved up the list of most common jobs. Along side that the U.S. government categorizes truck drivers and delivery people into one large category, making it a very sizable occupation.
Even though there is gradual growth in the shipping industry due to the Amazon effect. Amazon is footing the bill for everyone’s favorite promotion “Free shipping” thus losing profit. As a means to rebuttal this growing problem, Amazon has been expanding it’s warehouses to cut down shipping costs to and from individual warehouses and using shipping providers like USPS and Fedecx and using it’s own delivery trucks instead,