Amazon has announced it has rolled out free next-day delivery to more than ten million products for Prime members.
Free one-day delivery ten times larger than original two-day offering
Amazon first launched two-day delivery in 2005, with one million items available to ship using the service. In Q4 2018, the retailer announced that it had expanded same-day delivery and one-day delivery to more than 10,000 cities and towns in the US. Amazon has now announced it has expanded its Prime Free One Day delivery service on more than ten million products across the US, with no minimum purchase amount. In a press release, Amazon commented: “Today, the most popular one-day items range from books, beauty and baby wipes to devices, dish detergent and doggie bags”.
Amazon plans to add more products available for free one-day delivery whilst also expanding the delivery areas. In the US, Amazon’s shipping network currently consists of 110 fulfilment centres, 40 package sortation centres, 100 delivery stations and 20 air gateways.
Growing focus on reducing delivery times
We are increasingly seeing retailers investing to improve their delivery standards to respond to shopper demand and rising expectations for convenience. Expanding Prime Free One Day is another example of Amazon improving its delivery efficiency. The retailer also offers delivery of groceries from Whole Foods Market in an hour with its Prime Now service in around 90 US cities. Last year, the retailer launched its Hub apartment delivery lockers, similar to Amazon Lockers that are present at a number of retail sites, except these lockers are located in apartment buildings. Amazon Garage and Amazon Key also allow customers to have packages delivered inside their home or garage via the Amazon Key app.
The move to expand its free one-hour delivery service follows Walmart’s announcement that it has added free next-day delivery across a range of 220,000 of the most frequently purchased items. As one-day free shipping is starting to become the norm, we expect to see more competition amongst retailers to get goods to shoppers in more innovative ways in the future.
For more information on Amazon, Retail Analysis subscribers can read and download our Strategic outlook for Amazon report here.
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