Kicking it up a Notch: Amazon's Lightning-Fast Deliveries and the Price Tag
Rapid deliveries by Amazon reach nine billion customers globally
When it comes to Amazon's two decades of Prime membership, the tech powerhouse boasted the "swiftest speeds to date" in 2024 with an astonishing 9 billion deliveries worldwide - be it the same day or the next.
In the U.S. alone, Prime members saved an average of over $500 on delivery fees, almost quintuple the annual membership fee, as per Amazon. A yearly Prime membership amounts to $180 when paid monthly or around $140 if you pay in one go.
Rick Watson, CEO of RMW Commerce, weighed in via email, acknowledging Amazon's increasing delivery speeds but echoed concerns about rising costs saying, " Yeah, sure, Amazon's delivery speeds are lighting up like a Christmas tree, but they're burning a hole in our pockets too!"
Amazon has beefed up its delivery network, racking up shipping costs of around $90 billion in 2023. A large chunk of this investment has gone towards quickening delivery times for U.S. Prime members. Last year, the company boosted its number of same-day delivery hubs by more than 60% and now caters to over 140 metropolitan areas.
Yet, some areas have been dropped by the e-commerce giant. In December 2024, Washington D.C.'s Attorney General office slammed Amazon with a lawsuit, alleging that it intentionally slashed the fastest delivery service for nearly 50,000 Prime members residing in historically underserved communities east of the Anacostia River, breaking the city's Consumer Protection Procedures Act. Amazon denied the allegations, stating that it tinkered with delivery routes and schedules for the safety of its drivers and that it's always crystal clear about delivery times.
Looking at the bigger picture, Amazon seems to be placing more emphasis on AI and less on its seller and retail business, according to Watson, all while coping with surging competition. "You ain't seen nothing yet," he warned, "The real challenge for Amazon is the escalating growth of its marketplace. Guess who's breathing down its neck? Walmart's growing speedier than Lewis Hamilton on steroids and it's got the resources and heft to take on Amazon!"
- In the realm of technology, Amazon's focus seems to be shifting from its traditional business model towards AI, as suggested by Rick Watson, CEO of RMW Commerce.
- The escalating growth of Amazon's marketplace, particularly the increasing competition from Walmart, could potentially cause a war in the business world, according to Watson.
- Despite the impressive delivery speeds, concerns about the rising costs associated with these faster services have been voiced, such as those expressed by Watson, who likened Amazon's delivery costs to holiday lights that could burn a hole in one's pocket.
