Friday, 29 Sep 2023

Amazon is changing its deliveries behind the scenes to cut shipping times


Amazon is changing its deliveries behind the scenes to cut shipping times

Amazon is revamping its delivery operations in an effort to cut costs while speeding up shipping times to the next day or sooner.

Amazon (AMZN) has traditionally operated one national delivery network that distributed orders from warehouses spread across the country. If a local warehouse didn't have the product a customer ordered in, say, Detroit, Amazon (AMZN) would ship it from another part of the country.

But long-distance shipping has been costlier for the company and led to increased delivery times for customers.

Amazon CEO Andy Jassy has said it is a "critical challenge" for the company to lower the cost to get products from Amazon's warehouses to customers. So in pursuit of boost its profitability, the company has created eight regions in smaller geographic areas designed to ship products over shorter distances.

"Each of these regions has broad, relevant selection to operate in a largely self-sufficient way, while still being able to ship nationally when necessary," Jassy said in an April letter to shareholders.

The changes may impact which products consumers see when they search for products on Amazon's website. Items that are closer to customers will show up higher on results pages, Amazon said.

The Wall Street Journal first reported these changes.

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