Wednesday, September 12, 2012

Can Amazon Do Next-Day Delivery? Same Day? To How Many Customers?

The distinction between online commerce and physical retailing has been shrinking for some time. Mobile commerce apps and services provide one example of how that is playing out. But so is a warehouse strategy Amazon is undertaking.

Amazon expects that by building many more warehouses, in major metropolitan areas, it can cut delivery times from two days to one day. In some cases, some day, "same day delivery" might even be possible, though that seems largely out of reach for the moment. 

The new warehouses will allow Amazon to cut as much as a day off its two-day shipping times, said Jeff Bezos, Amazon CEO.  In at least some cases, Amazon might be able to offer same-day delivery, which would be a serious matter for other place-based retailers. 

“We want fast delivery,” Jeff Bezos, Amazon CEO says. At a minimum, “we can work on making it the next day.”

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