Amazon is encouraging shoppers to pick up their packages in person from stores as the e-commerce industry prepares for a delivery surge
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- Amazon has introduced new delivery and collection options that can help lower some of the biggest home delivery costs.
- The e-commerce giant is encouraging shoppers to pick up their orders from brick and mortar stores or local Amazon hubs.
- If items don’t get their homes delivered, shoppers can keep their “holiday season spoilers free,” Amazon said.
- But it could also save Amazon costs associated with the “last mile” of delivery, where drivers sometimes have to deliver orders several kilometers apart with just one or two parcels at each stop.
- Amazon did not immediately respond to a request for comment.
- You can find more stories on the Business Insider homepage.
Amazon has introduced new delivery and pick-up options so customers can keep their vacation orders “spoiler-free” – and encourages customers to pick up their packages rather than relying on home delivery.
Amazon customers can have their orders delivered to brick and mortar Amazon 4-Star and Amazon Books stores “to keep gifts a secret from those at home,” said the e-commerce giant in a press release detailing the options for the Delivery to be described on vacation.
It’s free for Prime members, with no minimum purchase amount, and same-day pickup is available.
These businesses are not very common in the US, so Amazon also encourages customers to collect orders from its “hubs”. With these self-service cupboards or manned counters in districts, apartment blocks and shops, customers can collect their orders without contact.
Amazon also suggested that Prime customers could use the “Amazon Day” service, which aggregates multiple deliveries so that customers receive their order on a specific day.
This reduces the number of deliveries while also making it easier to keep vacation orders confidential, according to Amazon.
The Amazon version focused on potential customer benefits – but the new options could also help overcome some of the biggest home delivery-related costs as they prepare for a holiday season that’s even busier than usual.
US e-commerce sales are expected to grow more than a third this year, in part driven by trends like “guilty”. This could lead to delivery problems.
As e-commerce becomes more popular, retailers are increasingly expected to offer fast and inexpensive or even free delivery.
Traditionally, the “last mile” of delivery – that goes from the distribution center to the customer’s door – is the most difficult and expensive part of the process. In rural areas, delivery points can be several miles apart, with only one or two packages being dropped off at a time. In urban areas, while the stops are closer together, traffic delays can slow this down.
By encouraging customers to pick up their orders at distribution points such as stores and hubs, which requires far fewer single stopovers, Amazon can reduce these costs.
Amazon Day similarly means that the e-commerce giant can merge several smaller shipments into one larger one, making it cheaper and easier for the business.
Amazon did not immediately respond to a request for comment.
Amazon expects COVID costs to be around $ 4 billion this quarter. This is due to indirect costs like lost productivity as well as direct costs like buying protective equipment for employees.
Amazon isn’t the only retailer preparing for a spate of online orders. Walmart adds 42 pop-up ecommerce distribution centers that ship up to 30% of its vacation orders and hires 20,000 ecommerce warehouse workers.
Macy’s has now teamed up with DoorDash for Black Friday and the Christmas season. The delivery platform “expects the unexpected” this year.