Amazon claimed that around 60% of packages are being delivered to customers in one day or sooner, all thanks to its Prime membership benefits.
The result showed an increased performance for the company as it used to be only around 50% during the second quarter of 2023.
(Photo : Denis Charlet/AFP via Getty Images)
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Amazon Prides on Speedy Delivery With Prime Subscription
Amazon Prime membership allows its subscribers to receive their packages with two-day shipping. The company currently charges $139 per year to its customers which comes with other perks.
In its first-quarter earnings report, the e-commerce giant shared its plan to make same and next-day delivery the standard. Amazon also hinted at doubling the number of facilities in the U.S. in the next years to improve same-day delivery services.
"As we get items to customers this fast, customers choose Amazon to fulfill their shopping needs more frequently," said CEO Andy Jassy in his letter to shareholders. Data have also shown that consumers tend to spend more and more frequently if they know the packages will arrive early, according to RBC Capital Markets.
Amazon to Improve Same-Day Delivery Amid Impressive Numbers
The e-commerce giant currently has more than 55 same-day delivery facilities in the U.S. These sites are mostly located around metro areas and are known for their large storage capacity.
Amazon also has a strict procedure for its same-day packages which allows them to condense the fulfillment process. The route of the package will be shortened with fewer stops, leading to a lesser cost of delivery per shipment.
Last year, the company revamped its network, splitting into eight regions instead of utilizing a national model. The move has proven to be effective, resulting in faster and cheaper deliveries for Prime members.
Other big retail companies have also tried to follow Amazon's footsteps in promising speedy deliveries. Walmart promised a 30-minute delivery time while Target launched its own loyalty program that offers same-day delivery within an hour.
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