Anyone can send a package from one side of the country to the other, that’s easy. The problem is the last mile. To get packages to consumers, ASAP, you need huge warehouses close to wherever your customers happen to be (everywhere). You need the logistical firepower to get these packages to consumers wherever they live, even if they live on the moon you need to be able to get there. There are simply no excuses.
How Does Amazon Deliver Same Day or 24/7
To achieve zero delivery time, you’ve got to go even further than the moon. Customers must have access to books, movies, TV shows, music and audiobooks on demand, 24 hours a day, 7 days a week until the sun dies, or the internet runs out.
Amazon have a vast array of distribution centers, wagons, and now, airplanes that’s right, airplanes. This is so they can process any unexpected rush during busy periods.As well as having very big distribution hubs colloquially known as fulfillment centers. Construction firms sub contracted by the company have built over 50 depots that cater only to their Prime customers. These ?prime fulfillment centers are based in urban metropolises and can get the product to you in under an hour, that is fast!
One such a hub nestles deep inside a large tower inManhattan and boasts over 50 feet of floor space. Inside, employees colloquially known as “pickers” pick the products by hand.
But how do they know which products to stock their warehouse with Well it’s simple. They have high-tech algorithms taken from web searches and fulfillment centers. These algorithms order the stock automatically.
How Does Amazon Ship So Cheaply?
The largest fulfillment centers are based many miles from city centers, but their comparatively small prime-only in New York, Paris and London mean that they can deliver products to many of their Prime customers in under an hour.With this amazing service there has never been a greater time to be a prime-consumer, not such a great time to be a prime-product-picker though. But hey, this is America.
In the distant past Amazon relied mostly on FedEx and UPS and a network of freelance independent couriers to transport goods from its warehouses to the customers doorsteps.But as demand grew, this level of sub-contracting was no longer feasible as products would often arrive late or damaged or sometimes wouldn?t arrive at all.
Share holder data tells us that between 2010 and 2014, the company spent more on shipping than what it made in revenue, which spelled disaster for the e-commerce giant.
To cut down on shipping costs and keep everything in house. Amazon has been moving the shipping process ?in house?. Amazon now boasts an entire fleet of planes that fly Prime products all over the world. They even have private runways with adjacent warehouses for ?special? deliveries.
This might seem like a lot of effort, but it means that their delivery system can still run smoothly during peak times such as the holiday season. Last Christmas Amazon got up to 8 times more orders than the whole year combined.