Doug Herrington, CEO of Amazon Global Stores, said in a statement yesterday that the company achieved its "fastest Prime pace ever " last quarter.
In the second quarter ending June 30, more than half of Amazon Prime members' orders in 60 major cities in the United States were delivered the same day or the next day.
And, so far this year, 1.8 billion items have been delivered to U.S. Prime members at this rate, more than four times as much as in 2019.
Herrington believes that Amazon is able to achieve this delivery speed due to three reasons: regionalizing Amazon's US operations network ; placing products closer to customers ; and utilizing the increasing number of instant fulfillment centers.
While Amazon has been working to reduce costs across its vast delivery network, the company is now prioritizing how to expand its same-day delivery service.
Herrington acknowledged that in his statement on Monday, saying the company will continue to invest in faster delivery and more product selection so customers will continue to choose Amazon and Prime . Earlier this year, Amazon revealed one of its delivery speed initiatives when President and CEO Andy Jassy said the company had begun shifting its national delivery network to a regional model . Instead of delivering from any one fulfillment center, the company operates eight interconnected regions to serve smaller (fine) areas, enabling faster and cheaper delivery services.
In addition, Herrington said in the statement that in order to determine which fulfillment centers should be placed with which inventory , the company uses advanced machine learning algorithms to predict possible customer demand.
He added that the company is also using other measures to improve delivery efficiency, one of which is to place products in more appropriate fulfillment centers in each region to shorten replenishment time while ensuring that product supply remains rich in different locations .
Amazon also plans to double the number of same-day delivery stores in the next few years . These sites will be located around the major cities they serve , but will have a smaller footprint and a more streamlined delivery process .
In this way, the average time from warehouse sorting to delivering packages to the shipping dock will be shortened to 11 minutes, which is at least 1 hour faster than the traditional fulfillment center . This move not only improves Amazon's delivery speed, but also saves customers delivery costs.
The statement also mentioned that the safety and health of employees remains Amazon's top priority. From 2019 to 2022, the recordable accident rate in the United States fell by 23% and the lost time accident rate fell by 69%. Since 2019, the company has invested more than $1 billion in safety initiatives and will invest another $550 million this year. Amazon Prime Delivery speed |
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