Culture, Economics, Marketing

Along The Amazon: The Real Invasion

The Brown Marmorated Stink Bug: perennial invader.

For the two previous summers, our community has been infiltrated by legions of quietly intrusive stinkbugs.  They seemed to magically appear, just out of the corner of our eyes, posing on a wall or lampshade.  

Amazon Prime van passes the broken shell of a Macy’s store.

Little did we know that these were just the first wave, doing reconnaissance for the main invasion: Amazon. Now, virtually on every street, at every corner, we catch a glimpse of an Amazon delivery truck slipping in and out of view.

Amazon first broke into our consciousness in 1995 with a simple concept: a place to buy books online.  Their ads claimed access to all of the world’s contemporary literature available, and their warehouse was in outer space, “The World’s Biggest Bookstore”.  We might have listened.

Today Amazon is the world’s second largest company, by market capitalization, following Microsoft, and just ahead of Apple.  It has the world’s second largest retail sales volume, following Walmart.  

Barbarians at the gate: Amazon vans use shuttered Macy’s parking lot in Northbrook, IL.

It has up-ended the retail business model.  In 1997 3% of its sales were attributed to third party sellers.  Today, 58% of its sales come from third party.    In response, 2019 saw the closing of 9,300 big brand retail stores in the U.S.  The shift will continue.

The most physical sense of Amazon’s presence is its growing fleet of delivery vans.  In 2019, Fedex and UPS and the United States Postal Service delivered approximately 13.9 billion parcels in the United States.    But on its own, Amazon dropped 2.5 billion pieces at our doors.  According to Morgan Stanley, that will increase to 6.2 billion in the next 3 years.

The Amazon convoy. Dispatched regularly in 10-15 vehicle sorties on Butterfield Road.

I remark on these stats primarily because we watch the daily procession of Amazon trucks that travel Butterfield Highway, between Libertyville and Mundelein. The company has leased space to stage its fleet in an available lot on Technology Way on Libertyville’s west side.   There, independent owners and employees are regularly dispatched in squads of 10-15 vehicles at a time to head south to Allanson Road in Mundelein where they will pick up their allotted parcels for delivery.  The system is efficient, and it is supported by a good road, courtesy of Lake County.

Staging area in west Libertyville.

Just over the Illinois/Wisconsin Line, there is a vast Amazon distribution center off of US Route 94.  It measures several football fields in size, plus parking lot.  Not coincidentally, directly across the highway sits an equally large U-Line facility that makes shipping boxes. One wonders if there is a tunnel.  According to Amazon’s 2018 statements, the company has 230 million square feet of fulfillment space.  Its premises house nearly 650,000 employees.  One might also wonder how many of those people used to work for Sears, Macy’s, Pier One Imports, Abercrombie & Fitch, Office Depot, Victoria’s Secret, The Gap, and Payless Shoes.

This is not a critique of Amazon in any way.  The company’s mission statement is in part to serve a “customer-centric obsession”.  To that end, it has grown from simply books to sales of more than 100 million items.  Its website lists not a few business diversifications, but a vast portfolio of divisions relating to fashion, video streaming, groceries, pharmaceuticals, publishing, music, movies, web services, home automation and home security.

We can mourn the loss of the local store, but we have gravitated toward a business model that for much of our wants and needs, is just plain easy.

I wish I could feel as good about the stink bugs. 

 

Standard

4 thoughts on “Along The Amazon: The Real Invasion

  1. Brian Mawhiney says:

    Leading with the stink bug identification was ingenious. Gets one’s attention. Your blog reminds me so much of Greg Clark who wrote articles covering a multitude of topics when we were young. I’m sure your US followers don’t have a clue who Greg Clark was but I looked forward to his articles as I do yours Phil. Yes shopping through Amazon is convenient but lacks the enjoyment and interaction we got at our local stores. Phil you have a talent that even Mrs Wilbur would have to compliment.

    Like

  2. Hi Brian: I do indeed remember Greg Clark. He was either with the Globe & Mail or the London Free Press, and an enjoyable entertaining writer. I am flattered by the comparison. Mrs. Wilbur beat grammar into me, indelibly. Not sure if she would appreciate my punctuation and sentence style now, but, I write the way I speak, I guess. I was also a big New Yorker fan back in the 60s, and that may have been an influence. The stink bugs are definitely out of control, but as of today, March 13, 2020 what isn’t? Thanks for writing Brian!

    Like

  3. Phil, like stinkbugs and those little white flags indicating herbicide application, I’ve been noticing more and more of these Amazon Prime trucks appearing in our neighborhood. I’m really conflicted. Like you said, ordering from this mega-business (and others) is “just plain easy.” (And amateur writers can easily publish, advertise, sell and distribute on Amazon.) But, as with everything, we’re paying a price. Fewer and fewer locally based stores run by “Mom and Pop.” Armies of trucks spewing their gas fumes. Ever-expansive disposable consumerism and crass commercialism…lousy literature. I don’t know.

    If you can manage to locate an isolated Tibetan village that’s remained untouched by Amazon, Microsoft, Apple, Wal-Mart, McDonalds, Chase, Geico, Fedex, UPS, Nike, and the Ford Model-T…please let me know. I’ll add it to my list of retirement destinations and start training for altitude.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s