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Amazon Plans 1,000 Same-Day Delivery Facilities
Made to order
Amazon is planning to expand its same-day fulfillment network from 85 locations to over 1,000 by 2031.
The Big Shipment: Amazon has been battling Walmart for retail dominance for decades… but Walmart has had the edge on essential products because of the sheer number of stores available to drive to. Amazon knows it can’t beat them when it comes to retail footprint… but it might be able to do so through ultra-fast delivery.
Between The Deliveries: Amazon wants you to never set foot in a big-box retail store again.
Amazon’s Project Mercury will put same-day fulfillment centers (SSDs) “within a 10-mile straight-line radius of 80% of Prime subscribers in the US by 2031,” according to Insider. That’s the average distance people are from their closest Walmart.
SSDs put 90,000 of Amazon’s most popular products — including fresh groceries, paper towels, and over-the-counter medicine — within an average five-hour delivery window.
Last Mile: Amazon’s grocery business alone generates $150 billion in gross sales annually, so scaling up its same-day delivery network is an attempt to juice those numbers. It’s also why Amazon is testing an all-day delivery model and a drone-delivery service called Prime Air, both of which could operate out of an SSD. The company plans for these types of fulfillment centers to handle half of its orders by 2035.
The thinking is that the more people shop, the more they’ll theoretically order.
The Future: It’s only a matter of time before Amazon connects its livestreaming-creator program with same-day product deliveries for maximum shopping influence.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.