Amazon adds warehouse network closer to cities to speed up same-day delivery
Live MintAmazon.com Inc has quietly opened a series of small warehouses closer to big U.S. cities in a move to shave hours off delivery times, the company told Reuters. The initiative underscores the company's aim to stay quick in online retail, outdoing competitors' free two-day delivery offers so shoppers remain loyal to Amazon's shipping and media-streaming club Prime, which costs $119 per year in the United States. 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. 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.