Amazon has Shipment Delivery Problems in US too

Last Year, the combination of poor weather and robust online shopping led to some Amazon customers not receiving their deliveries on time (by Christmas Day). At the time, an Amazon spokesperson said that the company did get the items
to its shipping partners “on time for holiday delivery” and that it was in the process of “reviewing the performance of the delivery carriers.”

So, what is Amazon doing to ensure excellent service this year? In addition to continuing to beef up its fulfillment
network in general, during 2014 Amazon has been aggressively setting up a new network of smaller sortation centers that enable the company greater control over the last mile delivery of packages. Also, by leveraging these new sortation centers and its expanded partnership with the USPS, Amazon is able to both shorten the time for two-day delivery eligibility and offer for the first time Sunday deliveries.

While these are all good things for Amazon’s customers – and longer term likely also for Amazon’s growth – it also comes with a cost. Back of the Envolope calculations estimate that new Fulfillment Center square footage additions will increase more than 60% this year to nearly 15 mn.

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