• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Amazon says more packages are arriving in a day or less after hefty investment in speedy fulfillment
Editor's Pick

Amazon says more packages are arriving in a day or less after hefty investment in speedy fulfillment

by May 1, 2024
by May 1, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Amazon says it is getting even more packages to customers in one day or sooner, a metric the e-retailer is promoting to customers as it faces heightened competition in online shopping.

The company said on Monday that nearly 60% of orders placed through Prime in the top 60 U.S. metro areas in the first quarter arrived the same or next day. That is up from roughly 50% in the second quarter of 2023.

It is a topic that will be of notable interest to investors when Amazon reports first-quarter earnings after the close of trading on Tuesday. Wall Street expects the company to post another quarter of double-digit revenue expansion and for profits to more than double from a year earlier.

Cost-cutting efforts, cloud-computing demand and faster fulfillment have driven higher profits in recent quarters.

Speedy delivery is a hallmark of Amazon’s Prime subscription offering, which charges members $139 a year for benefits such as two-day shipping and video streaming. The company has said it wants to make same- and next-day delivery the standard, and it plans to double the number of same-day delivery facilities in the U.S. within the next few years.

“As we get items to customers this fast, customers choose Amazon to fulfill their shopping needs more frequently,” CEO Andy Jassy wrote in his letter to shareholders earlier this month. “And we can see the results in various areas including how fast our everyday essentials business is growing (over 20% y/y in Q4 2023).”

According to RBC Capital Markets data, consumers have been shown to spend and shop more often if they have one-day shipping.

Amazon’s physical footprint swelled between 2020 and 2022 as the pandemic-driven e-commerce boom pushed the company to rapidly add new warehouse and delivery centers to its logistics network. Amazon last year retooled that network into eight regions instead of a national model, which the company says has resulted in faster yet cheaper deliveries. Jassy in his shareholder letter noted that cost to serve, or the cost to get a product to a shopper, was down in 2023 by more than 45 cents per unit year over year.

Amazon has already stood up more than 55 same-day delivery sites in the U.S., primarily clustered around major metro areas. The facilities are roughly 100,000 square feet, compared to a typical Amazon warehouse, which can be the size of 26 football fields, and they store a smaller selection of goods that are the top-selling items in each city.

Same-day sites also condense the fulfillment process, typically spread across multiple Amazon facilities under one roof. A package makes fewer stops on its route to a shopper’s doorstep, which cuts down on costs per shipment.

Amazon has bolstered investment in fast shipping as traditional retail rivals Walmart and Target have stepped up their delivery game. Walmart says it can deliver items to shoppers in as little as 30 minutes, while Target in March launched a new loyalty program that offers same-day delivery on orders more than $35 in as little as an hour.

This post appeared first on NBC NEWS
You Might Also Like
  • College protesters want their schools to divest from ties to Israel. Here’s what that means.
  • 65-year-old quit his job and emptied his life savings to start a business — now he’s worth $11 billion
  • Target unveils new items costing $10 or less — and some under $1
  • S&P 500 closes above 5,600 for the first time, lifted by gains in Big Tech
Share
0
FacebookTwitterPinterestWhatsapp

previous post
As home sellers and buyers wait on a Fed cut, here’s how mortgage rates have affected the spring housing market
next post
Gain AN EDGE Over Other Traders with ADX/DI

You may also like

What to expect as the Fed prepares its final interest...

December 13, 2023

Immersive entertainment company Cosm lands rights to broadcast NFL games

October 29, 2024

Drone company’s stock soars after it appoints Donald Trump Jr....

November 29, 2024

Boeing expects a 2024 cash burn, slow recovery of airplane...

May 25, 2024

Paramount ends DEI policies, cites Trump executive order

February 28, 2025

Walmart says users of weight loss drugs are buying less...

October 9, 2023

Disney will name Bob Iger’s replacement in early 2026

October 21, 2024

Laid-off tech workers turn to LinkedIn, therapy and one another...

March 13, 2024

Willow Bay and Bob Iger to take controlling stake in...

July 18, 2024

Inflation is finally slowing down, but consumers are still feeling...

June 16, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025
    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,169)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    UAW president warns new walkouts could...

    October 16, 2023

    Disneyland characters and parades cast members...

    February 15, 2024

    Dick’s Sporting Goods is latest retailer...

    March 11, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here