Prime One-day Shipping draws an $800 million investment from Amazon
Amazon has been a leader in eCommerce worldwide for quite some time now, and they are about to make an investment that will potentially have a huge impact on retailers worldwide! For years now, the Amazon was setting the standards in eCommerce fulfilment, and their programs available under their Prime program have been solid and performed magnificently. Still, they feel this is far from enough and they are ready to expand their portfolio significantly in the US by expanding their One-day Shipping to a much wider geography.
Until now, this service was available to certain members in certain areas in the US, and it was limited to the products that are in stock in those areas. Such service is also already present in the UK, and it has much better coverage there.
The reason for this is rather simple – the UK is a much smaller country and it provides far less logistical headaches to cover such a limited space. In the US, the territory is simply too big to cover it with this service at this time.
It is the exact reason why Amazon is making this huge investment! By investing such a huge figure, they aim to dramatically increase their level of service. This move is possible thanks to the huge experience the company possesses in the logistics area, as they have been perfecting the system for the past 20 years.
With the huge network of warehouses and delivery options they have, as well as their growing air fleet, they feel they will be able to provide this service to the majority of the customers in the US.
Of course, it will require a lot of careful planning in regards to the stock, but with such a huge financial injection as well as the experience the company has, this should be a challenge they are more than able to meet.
If this investment proves to be successful and they manage to expand their coverage, it should have a dramatic impact on retailers in the US as they will have to find the way to respond with equally superb service, or they will simply become non-competitive!