Projections Say Amazon's Same-Day Delivery To Reach 31% of US Consumers
One thing about Amazon, they are not holding back any punches when it comes to its’ e-retail growth. This is why the company is number one, doing it with power and ease. In recent years, many experts have suggested that Amazon is in the race for more same-day delivery just like every other big retailer, yet it is quietly making its’ moves. However, last year Amazon became quite outspoken about its’ plans involving same-day delivery. Amazon CEO Jeff Bezos discussed at that time, same-day delivery via drones. This was a huge statement and Bezos meant all of it.
That alone let the world know just how serious Amazon has been about getting its’ products in the hands of its’ consumers fast. Now, a recent projection shows that the retail giant will be able to provide same-day delivery to 31% of its’ customers by 2015. The projection comes from global supply chain and logistics consulting firm MWPVL. President and CEO Marc Wulfraat released the projections. At a Wells Fargo Securities webinar, Marc stated, “The concept of same-day delivery is quickly becoming a competitive requirement rather than a nice-to-have service in key markets such as Los Angeles, San Francisco and New York, where people are willing to pay a premium for this service”.
He also added that he felt Amazon wants to offer same-day delivery in the top 40 North American cities by population and that would give about half of US consumers access to same-day delivery. Amazon has not commented on the MWPVL projections, but they do make a lot of sense. Amazon’s Local Express same-day delivery program currently operates in 11 cities and metropolitan areas. Those cities include New York, Chicago, Boston, Philadelphia, Las Vegas, Washington, D.C., Phoenix, Seattle, Baltimore, Indianapolis and the metro area of San Bernardino, CA, according to Amazon. These cities give Amazon access to 21% of the US population. Therefore, it appears with simply more growth, the reach will expand to 31%.
Earlier this week, Bezos released his annual shareholder letter, in which he promised more “innovation” in fast deliveries, including the use of drones. The letter also said Amazon’s plan to expand Sunday deliveries “to a large portion of the US population” this year. He did not mention specifically same-day delivery. Amazon partnered with the US Postal Service in November of last year to launch Sunday delivery in New York City and Los Angeles. With the physical assets of the USPS and its’ need for revenue, this relationship will probably expand.
Amazon states it operates over 40 US distribution centers. This is what will be one of the major keys for Amazon to successfully offer the fast delivers that its’ after. Same-day couriers like A-1 Express can become a partner with Amazon to make their same-day delivery plans a reality. This San Francisco Courier has a national footprint and can help Amazon expand its’ current Amazon’s Local Express same-day delivery program quickly. There’s nothing like partnering with a company like A-1 Express, which is an expert in same-day delivery. A-1 Express can also be a great option for fast customer order replacements, delivery errors and returns.
Reference: 4.11.14, Internet Retailer, Thad Reuter, Amazon’s same-day delivery could soon reach 31% of U.S. consumers
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