Amazon says it has seen a sharp rise in the speed of its Prime deliveries this year.
The eCommerce giant announced Tuesday (July 30) that it made more than 5 billion same-day or next-day deliveries so far this year, up more than 30% year over year and a company record.
Most of the 5 billion items were delivered “on behalf of independent sellers using Fulfillment by Amazon,” the company said in a news release. “More than 60% of the units sold in Amazon’s store come from independent sellers.”
Amazon says it reached this goal by expanding its same-day delivery service to more than 120 metro areas in the U.S., shortening the distance deliveries had to travel by regionalizing its fulfillment network.
The company announced last year that it was doubling its same-day delivery centers, along with plans to recruit smaller, local businesses to assist in its last-mile delivery efforts.
In addition, the company says it has also improved inventory placement and ensured that in-demand products are stocked locally and in the proper buildings for each region.
The 5 billion figure is up from the 2 billion-plus number the company reported for the first quarter of 2024 in April and up from 1.8 billion at this point last year.
PYMNTS last week wrote about Amazon Prime as an example of “product market fit,” the concept of recognizing the importance of aligning products with market demands.
“Many loyalty initiatives flounder because they focus inwardly on the program mechanics rather than outwardly on understanding genuine customer needs,” that report said.
Prime, launched in 2005, was originally designed to ease customer frustration with shipping times, focusing at first on delivering the loyalty program perks that its top customers desired, gradually expanding its offerings as time went on.
“Amazon listened to its customers, understood their pain points, and continually invested to acquire and retain more members and transform them into brand advocates,” PYMNTS wrote.
“The emphasis here is on investing in the customer rather than the product. In today’s landscape, instant gratification holds heightened significance, particularly evident in subscription loyalty programs like Amazon Prime, where members receive instant benefits. Amazon Prime members spend nearly twice as much annually compared to non-Prime members.”
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