One-day shipping? Amazon says yes
ZDNet’s Larry Dignan tells TechRepublic’s Karen Roby that Amazon intends to widen the convenience gap between rivals with one-day shipping. The company plans to spend around $800 million in Q2 as it begins rolling out its latest innovation. Read more: https://zd.net/2ZFaWqZ
Does this expansion of the Delivery Service Program make sense for Amazon? You bet. Consider the following:
Amazon is spending about $800 million in the second quarter to launch a logistics network for one-day shipping. Those shipping costs are going to be higher if the US Postal Service, UPS, and FedEx are the sole providers. By expanding its logistics networks locally, Amazon creates more redundancy. Most of these Delivery Service Program small business partners are local. Amazon needs more logistics saturation. Amazon said the Delivery Service Program has created 200 small businesses. By enticing more employees to become entrepreneurs, Amazon gets more turf covered. Training costs could be lower for Amazon employees. Remember that Amazon provides training for its Delivery Service Program. Former employees would presumably have a lot less to learn about Amazon’s approaches since they’re already tied to the corporate culture.
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