Key Points:
- Amazon launched 1-hour and 3-hour delivery services in many US markets.
- This move aims to increase shopping frequency and compete with Walmart.
- Over 90,000 products are available for 1-hour delivery, using existing networks.
- Expedited delivery options come with an extra fee for both Prime and non-Prime members.
Amazon is stepping up its speedy delivery services, now offering 1-hour and 3-hour shipping in various US markets, including major cities like Los Angeles and Chicago. This move is part of Amazon’s ongoing efforts to stay ahead of its main e-commerce rival, Walmart.
Fast delivery has been a key strategy for Amazon to encourage customers to buy more items and shop more often. In December, the company also launched “Amazon Now,” a separate service that delivers groceries and everyday essentials in 30 minutes or less in specific areas like Seattle and Philadelphia.
Udit Madan, Amazon’s Senior Vice President of Worldwide Operations, stated in a press release, “We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members.”
On Tuesday, the Seattle-based e-commerce giant announced that its 1-hour delivery option now covers over 90,000 products. This includes everyday necessities, toys, and even toilet paper. The service will use Amazon’s existing same-day delivery network. The 60-minute option is available in major US metropolitan areas and smaller cities such as Boise, Idaho. The 3-hour option has rolled out in more than 2,000 cities and towns. Amazon also confirmed that perishable groceries are available in selected areas.
To make sure these ultra-fast orders get fulfilled quickly, Amazon has put in place several operational changes. They introduced special workstations for these orders within their current same-day delivery centers. New yellow labels now go on these packages for easy identification, and updated signs throughout the facilities help direct delivery partners efficiently.
These high-speed delivery options come with an additional cost. Prime members will pay an extra $9.99 for 1-hour delivery and $4.99 for 3-hour delivery. Customers without a Prime membership will pay $19.99 for 1-hour orders and $14.99 for 3-hour deliveries.
