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Amazon opens small warehouses to ensure same day delivery to customers


Syed Umarullah HussainiWeb Editor

03rd Mar, 2020. 04:19 pm
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Amazon

American multinational technology company Amazon has opened a series of small warehouses closer to big U.S. cities in a move to shave hours off delivery times.

Reuters reported that Amazon updating its same-day delivery program for shoppers in Phoenix, Philadelphia, Dallas and Orlando, it said.

Amazon will guarantee packages arrive by several set times daily.

Amazon has long offered one or two-hour delivery via Prime Now, a service that includes fresh groceries and more than 20,000 items.

The same-day offer will now guarantee delivery of more than 100,000 products, from phone chargers to dog food, in as little as five hours, from a new warehouse close to each launch city, said Jon Alexander, Amazon’s director of delivery experience. For comparison, Amazon offers more than 100 million items for two-day U.S. delivery or faster via Prime.

The new format combines the storage, picking and packing functions of Amazon’s fulfillment centers with the sorting and delivery functions of other facilities into a single building.

Compared with fulfillment centers, which are farther from urban cores and house much more inventory, the new warehouse is roughly a tenth the size, at 100,000 square feet. Amazon says shorter drive times will help it meet its pledge on carbon emissions.

Earlier Amazon.com Inc.’s founder and chief executive officer, The tech titan Jeff Bezos disposed of 2 million shares in the past week, collecting more than $4 billion, according to regulatory filings.

The transactions are part of a pre-arranged trading plan. An Amazon spokesman declined to comment.

That brings Bezos’s total stock sales to more than $14 billion, with the majority occurring in the past four years, according to calculations by Bloomberg. Bezos, 56, said in 2017 that he selling about $1 billion a year in Amazon stock to fund Blue Origin LLC, his space flight company.

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