Amazon is known for its fast and cheap deliveries – and now the company is upping the ante.
The e-commerce giant has redesigned its extensive logistics network to shorten the distances products have to travel across the country to get them to customers faster and boost profitability. The Wall Street Journal reported.
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US parcel shipping hit a record 21.5 billion in 2021, according to a Pitney Bowes Report; the same year CNBC reported that Amazon is on track to become the largest US delivery service by 2022.
Amazon has significantly expanded its shipping network during the pandemic, roughly doubling its warehouse space in two years; The company now operates more than 1,000 facilities across the country WSJ.
According to executives, reinventing the delivery network became a priority following the pandemic expansion, as the company also cites a link between speed of delivery and continued growth.
“When we offer faster speeds, customers are more likely to buy something,” said Udit Madan, Amazon’s vice president of transportation. “They come back more often to shop with us.”
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Amazon has now named eight regions that are supposed to act “self-sufficiently”.
The new facility means products will only leave their regions when absolutely necessary. That could change what customers see in their search results: Products that are already in a region could appear first, according to Madan.
