Amazon has installed at least 15,000 robots at 10 different U.S. warehouses which should cut operating costs by one-fifth and get packages to customers more quickly this holiday season.
The 320-pound orange robots, which move around on wheels, show how Amazon has adopted technology developed by Kiva Systems, a robotics company it purchased in 2012 for $775 million.
Amazon showcased the technology this weekend ahead of Cyber Monday, which is considered by many to be the biggest online shopping day of the year.
The robots were created to help the U.S. online retailer get boxes out to customers quicker and to better compete with brick-and-mortar stores, where most Americans do their shopping. They might also be able to help Amazon avoid issues that took place in 2013, including when a surge of packages overwhelmed UPS and delayed the arrival of presents around the world, according to Reuters.
The company offered shipping refunds and $20 gift cards in order to compensate customers.
Amazon sent out robots this summer, ahead of the holiday quarter, when the retailer usually books about one-third of its annual revenue. The warehouses are located in five states- California, Florida, New Jersey, Texas and Washington.
Amazon said back in June 2013 that it expected to spend around $46 million to install Kiva robots at its warehouse in Ruskin, Florida, including $26.1 million for the equipment, according to Reuters citing company filings.
The robots have allowed the company to hold about 50 percent more items and shorten the time it takes to provide same-day delivery in a number of locations, said Dave Clark, senior vice president of worldwide operations and customer services to Reuters.
Amazon's Tracy, California warehouse workers stack goods in shelves carried by more than 1,500 Kiva robots, which use markings on the floor in order to navigate and form a "big block of inventory," Clark said.
"It's certainly proving out that it's justified itself," Clark said of the Kiva acquisition. "We're happy with the economics of it."
The robots have allowed Amazon to get the packages out the door in 13 minutes in some cases from the pick stations, compared to an hour and a half on average in older facilities.
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