Q: Do Amazon’s AI-empowered record-breaking sales signal a new era for e-commerce and industrial logistics real estate?
A: Our read of the latest Amazon Prime Day reinforces what we’re seeing on the ground as investors: The strength of e-commerce driven by an AI-enabled, agile consumer base appears to be changing the game and positioning logistics real estate as a standout asset class in today’s modern economy.
Amazon’s Sales Event Shows E-Commerce Is at an Inflection
Amazon just wrapped up a four-day sales event that contributed to a jaw-dropping $24.1 billion in U.S. online sales—that’s the equivalent of two Black Fridays.1 But the real story isn’t just the numbers. It’s how consumers are shopping, and what that means for the future of logistics real estate.
Mobile Is the New Mall
Over $12.8 billion of those sales came from mobile devices, signaling a clear shift toward mobile-first shopping behavior.1 Whether it’s browsing on the go or checking out from the couch, consumers are increasingly skipping traditional checkout experiences—favoring faster, spontaneous one-click purchases.
AI Is Amplifying E-Commerce Growth
Amazon’s sales were up 30.3% year over year on the back of a 3,300% surge in AI-driven traffic, underscoring how tools like Amazon’s AI assistant, Rufus, are reshaping product discovery and consumer engagement. Rufus helps users discover products through natural language queries, and it’s working—Amazon expects it to generate $700 million in additional operating profit this year, and $1.2 billion by 2027. By helping consumers find products that they need and want more easily and efficiently, these AI tools have the power to drastically shape purchasing behavior and improve conversion rates for businesses.
It’s Not Just Big-Ticket Items
More than half of all orders were under $20, showing that AI-enabled e-commerce is thriving across all price points. Categories like appliances, office supplies, and electronics saw sales double, and the average order value hit $53.34, reflecting healthy consumer spending and bundled purchases.1
What This Means for Warehouses
Put simply, AI-enabled shopping = more online purchasing = more need for distribution warehouses and logistics facilities.
Every $1 billion in online sales is estimated to create demand for 1.25 million square feet of industrial logistics space. With Amazon now representing ~10% of total U.S. retail sales and ~40% of e-commerce, the need for modern logistics facilities—especially near urban centers—is only growing.2
Amazon’s latest move? A $4 billion investment to triple its rural delivery network by 2026. Plus, its new Gen-12 facility in Louisiana can move products 25% faster than older sites. But faster doesn’t mean smaller—
Bottom line: E-commerce is evolving fast, powered by mobile, AI and consumer expectations for speed and convenience. And behind most clicks are a growing network of Ares-owned warehouses, fulfillment centers and delivery stations working to keep up. If you want to make a risk-controlled bet on what AI amplifies, in Ares' view, industrial real estate is a standout asset class.
For more on this topic, please see Investing in the New Economy | Ares Wealth Strategy
