Amazon’s Faster Delivery Boosts Prime Service, Beating Competitors

In this article, Amazon has announced that it is delivering even more packages to customers within one day or quicker through its Prime service, with over half (60%) of orders in the top 60 US metropolitan areas arriving at their destinations on time or the following day during Q1. This figure represents an increase from approximately 50% during the second quarter last year. As Amazon continues to focus heavily on fast delivery times as it faces increased competition, this metric is likely of great interest to investors ahead of its first-quarter earnings report due later today (Tuesday). The tech behemoth aims to standardize both same- and next day delivery service offerings across the US by doubling the number of facilities that provide such services within a few years. According to RBC Capital Markets data, faster shipping times can lead to increased spending patterns amongst consumers who are more likely to shop regularly when one-day deliveries become available. Amazon has already established over 50 same-day delivery sites in major US metropolitan areas and is currently expanding its network of facilities that store a smaller selection of top selling items for each city, thereby condensing the fulfillment process under one roof. The company’s efforts to speed up shipping times have come amid growing pressure from rival traditional retailers like Walmart who boast as little 30-minute delivery services and Target which recently launched its own same day loyalty program offering deliveries within an hour for orders exceeding $35 in value.