Amazon are delivering goods out of Amazon carnival tents in the US as part of their strategy to bring convenience to festival goers. If Amazon can recruit new customers through ultra convenient delivery to effectively what for the rest of the year is just a field, those who sign up for a trial of Amazon’s Prime subscription during the festival may well go on to become full paying Prime subscribers and shop on Amazon for many years into the future.
The plan is also part of Amazon’s effort to expand their logistics network. Amazon’s shipping costs have doubled in three years to $21.7bn (£16.57bn) in 2017 from $11.5bn (£8.78bn) in 2015 and by having a very localised on site delivery depot for carnivals reduces the cost of multiple single deliveries to what’s effectively a single carnival address.
The tents, which Amazon named modular delivery stations were launched last year after Amazon announced their push to expand their logistics network.
Amazon have built eight tents in states including Tennessee, South Carolina, Arkansas, Georgia, Colorado, Louisiana, Kentucky, and Idaho. The infrastructure serves as a fulfilment centre which facilitates goods to customers. Amazon staff sorts packages inside the tents and delivery drivers load them into vehicles to transport them to their final destination.
The current sites, which Amazon’s staff refers to internally as “carnivals” take weeks to construct – highlighting Amazon’s hurry to extend their delivery capabilities.
Amazon carnival tents stand up 36ft tall and range between 9,000sq ft and 18,000sq ft. Each tent employs 300 staff members. They’re made out of fabric pulled over steel framework and don’t need water or sewer lines. They require small property taxes and maintenance.
Amazon carnival tents serve as a temporary last-mile solution until they secure or build permanent fulfilment hubs. Their rapid construction allows Amazon to cover territories where they want to expand their logistics network without having a permanent fulfilment centre.
