Good news for Amazon staff as warehousing sector soars

red shopping cartAmazon yesterday announced plans to offer permanent jobs to about 70% of the US workforce it has hired on temporary contracts since March to meet consumer demand during the coronavirus pandemic. Next month, the world’s largest online retailer will begin informing 125,000 warehouse employees they can keep their temporary posts on a permanent basis. The remaining 50,000 workers it has brought on over the same period will stay on seasonal contracts some of which last for up to 11 months, a company spokeswoman said.
The move confirms predictions that the warehousing sector – a key logistical element in the e-commerce value chain – will be one of the  winners from the pandemic.
The demand for warehouse space has been growing in line with the rise of e-commerce ever since Amazon burst onto the scene 25 years ago and the pandemic looks set to give its growth an extra thrust. Earlier this month, BigCommerce reported that nearly two million e-commerce transactions were made on its platform in the first week in May, a 32% increase over  last year’s  Cyber 5 week when Cyber Saturday, Cyber Sunday, and Cyber Monday were tagged onto Thanksgiving and Black Friday. It was the fifth consecutive week that transactions on the BigCommerce platform outpaced the peak of last year’s Christmas shopping season.
The rise and rise of e-commerce  has thrown up new challenges for the industry, however, with  those companies able to guarantee speed of delivery set to have a competitive edge.

Main photo by hnnbz