Executive Briefings

In Many Parts of U.S., Amazon's Same-day Delivery Plan Said Not Ready for Prime Time

How close is Amazon to same-day delivery for most U.S. customers? Maybe not as close as we thought. While a report in May said that by the end of 2013 Amazon will have a distribution center within five miles of most major U.S. cities, a new calculation by supply-chain consultant Marc Wulfraat suggests Amazon has a lot farther to go before it can even reach 20 percent of U.S. shoppers.

Unlike the May numbers from Channel Advisor, Wulfraat just looked at the 20 largest U.S. cities"”which are arguably the best candidates for same-day delivery, since they have the highest customer density. Then he measured the distance from each city's epicenter to the closest Amazon warehouse, figuring a generous 100 miles for a DC to be able to do same-day delivery. The results weren't generous to Amazon's same-day plans: Only eight of the 20 cities currently have an Amazon DC within 100 miles.

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Keywords: transportation management, online retailing, Amazon delivery strategy, logistics services, logistics & supply chain, retail supply chain

Unlike the May numbers from Channel Advisor, Wulfraat just looked at the 20 largest U.S. cities"”which are arguably the best candidates for same-day delivery, since they have the highest customer density. Then he measured the distance from each city's epicenter to the closest Amazon warehouse, figuring a generous 100 miles for a DC to be able to do same-day delivery. The results weren't generous to Amazon's same-day plans: Only eight of the 20 cities currently have an Amazon DC within 100 miles.

Read Full Article


Keywords: transportation management, online retailing, Amazon delivery strategy, logistics services, logistics & supply chain, retail supply chain