Amazon Prime continues to be a service juggernaut in the tech industry as the company has broken a new record. According to a recent announcement, Amazon revealed it managed to deliver over two billion items in the first three months of 2024 through Prime. That’s more than the total amount of packages they sent out in Europe to members last year.
Worldwide Amazon Stores CEO Doug Herrington stated in March that almost 60 percent of Prime orders "arrived the same or next day across" 60 of the largest urban areas in the United States. In London, Tokyo, and Toronto, "three out of four items" arrived at their destination in the same time frame.
This success in the US seems to be the result of the logistical changes Amazon made in 2023. They essentially divided up the country into “eight interconnected regions" to serve specific geographic areas. These regions have a “fulfillment center” housing a wide array of items, allowing the company to quickly deliver their stock right to your door. Amazon even claims that thanks to AI, it can predict “which items [people] in various parts of the country” want and when they want them. The tech giant also works with multiple sellers, both big and small, to get those brand-name products out fast.
It’s possible Amazon will demolish its 2023 Prime delivery record. The company is certainly on the way and Herrington says they’re “just getting started.” But will they meet this goal? Most likely. Recent moves hint that they’ll do it, but there’s a chance they'll fall short.
New services
Not too long ago, Amazon made some important business updates.
They launched a new grocery delivery service for Prime members on April 23. For $10, subscribers can get unlimited delivery on orders over $35 from local and specialty supermarkets – so long as the final bill is over $35. That’s the only requirement. People without a Prime membership can join the program as well at $5 a month. However, they must own a registered EBT (also known as food stamps) card.
Before that, the company said it was expanding its Prime Air drone delivery service to the Phoenix Metro Area in Arizona. It’s not running yet. Amazon still has to get all the “necessary permissions” from the FAA (Federal Aviation Administration) before it can take to the skies.
So with the grocery delivery program and a little help from a fleet of drones, the 2023 Prime delivery record could be smashed. However, we hesitate to be confident in Amazon's corner because of the layoffs we’ve seen in the past few years. The platform has taken a hatchet to its business. From 2022 through 2023, Amazon cut over "27,000 jobs across almost every area" of the business.
Granted, things have slowed down, but Amazon CEO Andy Jassy has said they’re not done cutting costs. Layoffs could ramp up in the near future.
Memorial Day is coming up in the US and that means discounts. If you want to stay up to date on whatever Amazon is planning, be sure to follow TechRadar's Amazon Memorial Day sales roundup for 2024.
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