Summary: Amazon’s Jeff Bezos is leading the charge on Amazon’s new $1.5 billion airport—but is this going to have an impact on Amazon Marketplace?
Work is officially underway on Amazon’s new airport.
Amazon CEO Jeff Bezos took control of a front loader on Tuesday, May 14 to lift the very first pile of dirt, officially breaking ground and thereby marking the start of Amazon Air, the estimated $1.5 billion development project, slated to open in 2021.
The new Amazon airport will be located near Cincinnati, and it promises to be anything but small.
Amazon signed a 50-year lease from Cincinnati/Northern Kentucky International Airport back in 2017 granting the company more than 900 acres of property. The finished development will resemble in size the global hubs of top cargo airlines and will bring an estimated additional 2,000 jobs to the airport.
In other words, the project promises a significant impact.
But the new surge of job opportunities doesn’t represent the only impact the project is going to have. Once complete, the project will have a significant impact on the whole Amazon community—particularly on those businesses who comprise Amazon Marketplace.
The project marks the first stage of Amazon’s new action plan to take control of its shipping process. Amazon’s new airport will allow the e-commerce giant to become less reliant on carriers like UPS, FedEx, and the US Postal Service. The project will ultimately aid in the company’s goal to cut costs and speed up overall delivery times, and it is particularly important for Amazon’s plans to offer one-day shipping for Prime members.
What Does This Mean for Those Businesses who Utilize Amazon’s Business Services?
Amazon Air ultimately represents good news for any of the businesses who currently take advantage of Amazon’s business platform. Why? Because Amazon is about to create an unstoppable business advantage: it ultimately eliminated shipping competition.
One of the biggest challenges for businesses today is the fact that, in order to succeed, they need to offer their products on at least a nation-wide scale—and international is better. The problem with this business model involves the cost of shipping and the length of time it takes to deliver products to consumers.
Today’s buyers aren’t just going to be persuaded by low item costs; they also want low-cost or free shipping and they don’t want to have to wait up to a month to receive their purchases. That means competition hinges on a business’s ability to offer competitively priced, fast shipping, ideally with shipping guarantees—and that is something that is in the hands of the carriers rather than in the hands of the company. Amazon’s new airport is providing a way for businesses to not only increase their competitive edge in the shipping department, but also to place the responsibility for those shipping expectations into the hands of a company that will ultimately have more control over it.
Amazon Air will mean the businesses that are facilitated by Amazon can offer affordable one-day shipping to consumers without incurring the risk of guaranteeing those shipping expectations—and that is something most other businesses won’t be able to compete with.
The Difference for Small Businesses
Now, small businesses, those who may not have had the funds to compete with the shipping perks larger companies could offer, have the advantage: listing their products on Amazon means a wider customer reach with unbeatable shipping guarantees that are fulfilled by Amazon, so any hassle or fallback from those guarantees is handled by Amazon, taking a lot of pressure off the small business.