One of the biggest reasons why Amazon Prime has become so incredibly popular has to do with the fact that members would be able to receive the items they order in 48 hours for free with their membership. That was the way that Amazon attracted literally millions of people to subscribe to Prime. However, they have recently announced that members will now be able to get their orders in 24 hours. This will obviously put a lot of pressure on FedEx, UPS and the United States Postal Service. However, Amazon is confident that they will be able to accommodate all of the orders they receive.
There will now be 10 million items that will be eligible for Prime members to get within 24 hours. Target and Walmart also have their own programs where customers will be able to receive orders in 24 hours. However, they do not offer anywhere near the number of items that Amazon does. At the moment, Walmart has 200,000 items that are eligible for 24-hour delivery. Target only has 30,000. Convenience is the key to attracting customers in the world of online shopping. The company that can get the products to people the fastest will be the one that gets the sales. It is really that simple.
Amazon will be investing heavily in the new 24-hour delivery program that Prime is offering to members. They are projected to spend as much as $800 million in 2019. This demonstrates how important it is to Amazon to be the first company that people think of when they need to get a particular item in a hurry. The switch to 24-hour delivery for this many products had been talked about for a long time. However, Amazon needed to see if it would be possible logistically to deliver so many order in that short period of time.
Amazon now has one of the most impressive logistics networks that has ever been put together by any company on the planet. In fact, it is possible that Amazon might eventually start shipping items for other companies to make extra profit. After all, if they have extra room on one of their cargo planes, why not fill it with items from a different company. Amazon has not announced any such plans as of yet. However, they certainly have the network of planes and trucks to offer a delivery service to other companies in the future.