Amazon Expands 1-Day Delivery in the US..."1.8 Billion Items Delivered Within a Day"
Amazon, the world's largest e-commerce company, is expanding its '1-day delivery' service, which delivers ordered products on the same day or the next day in the United States.
Amazon announced on the 31st (local time) that the number of items delivered on the same day or the next day for paid members (Prime) this year has reached 1.8 billion. This is four times the scale compared to 2019, when the 1-day delivery service was officially launched.
Currently, in the top 60 metropolitan areas in the U.S., more than half of Prime orders arrive on the same day or the next day. Amazon explained that in the last quarter, it "achieved the fastest delivery speed ever," with the distance products travel from warehouses to customers reduced by 15% and the number of handling instances decreased by 12%.
In recent years, as delivery speed competition has intensified in the U.S., Amazon has invested heavily to reduce delivery times from two days to within one day. To achieve this, it restructured its warehouse and delivery network, moving away from a model concentrated in a single warehouse to a system with eight hub warehouses nationwide. According to logistics consulting firm MWPVL International, Amazon has opened 45 small logistics centers nationwide, mainly in metropolitan areas, since 2019.
Udit Madan, Vice President of Delivery, stated plans to double the number of small logistics centers over the next two years. Vice President Madan said, "Fast delivery is costly and logistically challenging, so most companies incur significant losses. However, we have increased speed while reducing costs."
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In the U.S., delivery speed competition among e-commerce companies such as Amazon, Walmart, and grocery delivery service Instacart has intensified in recent years. Walmart utilizes thousands of offline stores as fast delivery warehouses for online orders. Amazon's 1-day delivery service helps retain paid members who pay $139 annually.
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