Amazon continues to develop using its last-mile logistics community as a pure pickup-and-delivery service for 3rd get together shippers, more and more positioning itself as a pure transport various to UPS and FedEx.
The e-retail big has launched two-hour supply from a choose group of Ceremony Support shops to its Amazon Prime members. The service the pharmacy chain supply service is launching this month in Newark, NJ and Burbank, CA, Provide Chain Dive reported.
Amazon mentioned it might supply sundries from Ceremony Support shops together with well being and private care objects, groceries and cosmetics, with one vital caveat: it gained’t be delivering prescriptions or different prescribed drugs from the drug shops.
An Amazon spokesperson mentioned in an announcement the supply service will develop to incorporate different Ceremony Support areas; the chain encompasses 2,200 shops in 17 states.
Amazon more and more has been leveraging its on-demand, same-day “flex” supply community to service third-party sellers, providing two-hour deliveries from West Coast chains Bristol Farms and Pet Meals Specific, in addition to Bartell Medicine, Cardenas Markets and Save Mart.
In August, Amazon launched same-day supply service for retailers PacSun, GNC, SuperDry and Diesel in 10 metro markets together with Atlanta, Dallas, Chicago, Las Vegas, Miami Phoenix and Seattle.
The choice is proscribed to pick objects and is free to Prime members so long as they spend no less than $25; for orders beneath $25, the service prices $2.99.
For the previous 12 months, Amazon has been trimming its overextended logistics community in a cost-cutting binge that has seen it shut, cancel or delay the opening of 99 services encompassing greater than 32M SF in 30 states, based on MWPVL Worldwide, a logistics advisor that tracks Amazon’s community.
The lion’s share of the closed services is positioned alongside the Boston—Washington DC hall and in California, Florida and the Chicago metro. Success facilities and last-mile supply stations are the power sorts most impacted by the closures, based on MWPVL.
In response to MWPVL information, regardless of its across-the-board effort to trim warehouse house, Amazon nonetheless has an estimated 231 services encompassing 82M SF within the planning levels, most of which have been earmarked for an growth of its last-mile supply attain that was deliberate earlier than the cost-cutting started in Q2 2022.
Whereas delaying the opening achievement facilities, together with newly constructed multi-story mega-warehouses—which is able to stand empty for as much as two years—Amazon has but to ascertain a method for final-mile supply stations which might be nearing completion, MWPVL mentioned.
In response to the report, the corporate is alternating between opening supply stations in new markets or instantly itemizing new supply services for sublease in established markets.
