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Amazon is trying to grow its clout in the same-day delivery market

February 27, 2023Written by George Anderson

Photo: Getty Images/simon2579

Retailers are determined to get goods into the hands of consumers quickly and Amazon.com is always part of the conversation on that topic. So there’s little surprise in The Wall Street Journal’s reporting that Amazon intends to become a significant force in same-day deliveries. However, how close it is to achieving that goal may surprise a few. Amazon has opened 45 same-day shipping centers since 2019 and it could have as many as 150 operating within the next few years, according to MWPVL International, which tracks the retail and technology giant’s operations. The facilities, which carry around 100,000 of the most popular SKUs sold by Amazon, are being opened in major metropolitan areas around the U.S. The Journal said Amazon has opened new same-day sites in Los Angeles, Phoenix and San Francisco. “We’re always exploring ways to bring our customers new levels of convenience and delivery options that work best for them. Same-Day Delivery is one of the latest innovations,” an Amazon spokeswoman told the paper. Amazon has been trying to nail same-day delivery since at least 2009. Still, the Journal’s reporting suggests it may have worked out most of the bugs as it goes up against retailers using Instacart, Target and Shipt, and Walmart. The Amazon spokesperson told the paper that 1.5 million people try same-day delivery through the site monthly. Amazon offers free same-day delivery in markets where it is available on orders of $25 or more. Smaller orders come with a $2.99 charge. Walmart+ members receive free same- or next-day orders from local stores. Subscribers to Instacart+ and Target’s Shipt service also receive free deliveries. Amazon is far from alone in making investments to speed deliveries to customers in a more efficient and less costly manner. Target last week said it would invest $100 million by the end of 2026 to open six new sortation centers as it seeks to increase the number of next-day orders it fulfills while simultaneously lowering its costs. The retailer, which fulfills over 95 percent of its online orders from stores, has nine sortation centers in Colorado, Georgia, Illinois, Minnesota, Pennsylvania and Texas. It opened its first center in 2020 in its home market of Minneapolis.

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