This year, Amazon has changed its US fulfillment network, operating with eight regional hubs. This enables the e-commerce giant to get the items closer to customers, which results in faster turnaround times for same-day deliveries.
CEO Andy Jassy confirmed to CNBC News that they are using “sub-same-day facilities.” Fulfillment centers send out orders faster, as they have parcels ready for same-day shipment.
A plan that works
Two main factors play a role here:
- Transportation distances shortened.
- It lowers costs.
- Speeds up the delivery process.
Delivery times are now half as short as they used to be. Parcels no longer takes a day to arrive, but same-day deliveries are now possible.
Customers love getting items quickly
Amazon now delivers 60% of its shipments in the top 60 metropolitans on the same or next day. It has an impact on customer satisfaction and plays a pivotal role in:
- Changes customers’ conversion rate (the number of people who follow through and make a purchase).
- The rate at which customers buy.
“What you find downstream for customers is when you’re able to get them delivered much faster. They consider you for much more of their purchases,” Jassy told the news outlet. “Customers love getting items quickly.”
ALSO READ: Amazon delivers parcels faster than ever
Faster deliveries and higher profits
Amazon’s profit increased by 13% to $143.1 billion between July and September 2023, surpassing Wall Street’s expectations.
Management attributes the success to their US fulfillment networks.
“In addition to speedy deliveries, the crucial thing was that each region must carry the breadth of selection that customers expect,” says Amazon’s research director Amitabh Sinha.
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
