For many years, Amazon has been making huge strides when it comes to same-day deliveries, leaving a positive remark for Prime members.
The e-commerce giant says on Monday, July 31 that a new milestone was made. The company boasts that 1.8 billion items have been delivered on the same or the next day for Prime subscribers in the US.
This would mean that the firm is pushing to double the number of same-day delivery sites in the country as part of its e-commerce business improvement.
Amazon Doubles Same-Day Delivery Sites in the US
According to a report by Bloomberg earlier this week, executives are betting on Amazon's plan to double the number of same-day delivery sites in the US for the next few years.
As the company struggled to deliver goods to its customers during the wake of the COVID-19 pandemic era, Amazon realized that faster delivery is the key to attracting more opportunities for buyers.
Over the last quarter, Amazon says that it managed to hit its "fastest Prime speeds ever," a feat that the company continues to maintain for the next quarters.
According to Amazon's Vice President of Transportation Udit Madan, the company has encountered a huge change in its "hub and spoke" fulfillment network. This is where goods are transferred across the US before reaching their destination.
To make the delivery more organized, the process is simplified through a new business model. In this model, Amazon prioritizes local facilities which frequently store the ordered items.
While the challenges lie in the speed of delivery, a fast delivery is indeed "logistically challenging" for Amazon. It's also expensive to the point that a company stakes some money in the process.
However, Madan highlighted that Amazon is hoping to adapt to the changes so the organization could improve the delivery speed while it cuts extra costs.
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More Same-Day Delivery Facilities, More Engagement
Amazon discovered that over half of the orders for Prime members have arrived on the same or the next day in the top 60 metro areas in the US.
With faster delivery of goods, Amazon sees that more customers are engaging with online shopping. A speedier delivery paves the way for buyers to purchase more products from retailers.
"We've consistently seen that as we're offering faster speeds, we're actually expanding the consideration set that customers think of us for when they're thinking about their purchases. What we're seeing is greater engagement and more purchases from customers," Madan said.
With the rollout of same-day sites, Amazon expects to hit two birds with one stone. First, the company wants to fulfill more deliveries of the items from a single location. Second, this change would net the company a nice profit in return.
Madan said that for the next two years, the same-day delivery sites in the country will be doubled as a result of this implementation, per CNBC.
While increasing the same-day facilities is already a given, Amazon refused to give the particular number of sites that it currently maintains.
