Amazon, the renowned ecommerce giant, has reportedly been opening up several smaller warehouses in close proximity to large U.S. cities in an attempt to shave off hours from the delivery times of packages.
The Seattle-based online retailer updated its same-day delivery feature for shoppers across Philadelphia, Phoenix, Orlando, and Dallas. The company guarantees that packages arrive at their destinations by numerous set times every day.
This initiative highlights the company’s goal to remain quick in online retail, outperforming competitors and their free two-day package delivery offers so that consumers stay loyal to the company’s media-streaming and shipping club, Amazon Prime, which coast approximately $119 annually across the U.S.
The company has long offered its Prime customers one or two hour package delivery times, a service that also covers fresh groceries apart from the 20,000 predefined items.
Jon Alexander, director of delivery experience, Amazon, stated that the new same-day delivery offer would now guarantee the delivery of over 100,000 packages, ranging from dog food to phone chargers, within as little time as five hours. To compare, Amazon offers over 100 million products for its two-day or faster delivery program in the U.S. through Prime.
Alexander added that the considerably smaller same-day delivery portfolio allows the company to put facilities much more closer to the customers. Additional products, approximately three million, would go through these warehouses on their way to the same-day delivery customers.
The new delivery format merges the storage, picking, as well as packing functions of the company’s fulfilment centers with the delivery and sorting functions of other facilities inside a single building.
In comparison to the Amazon fulfilment centers, which house significantly more inventory and are located farther from the cities, the new facility is approximately a tenth of its size, spanning 100,000 sq. feet.
According to Amazon, the shorter driving times would also help it in meeting its carbon emissions pledge.