Amazon to change deliveries (behind the scenes) to cut shipping times

May 16, 2023, 7:00 AM

Amazon is revamping its delivery operations in an effort to cut costs while speeding up shipping ti...

FILE: An Amazon worker moves a cart filled with packages at an Amazon delivery station on November 28, 2022 in Alpharetta, Georgia. Amazon is offering deep discounts on popular products for Cyber Monday, its busiest shopping day of the year. (Photo by Justin Sullivan/Getty Images via CNN)

(Photo by Justin Sullivan/Getty Images via CNN)

Originally Published: 15 MAY 23 16:53 ET

(CNN) — Amazon is revamping its delivery operations in an effort to cut costs while speeding up shipping times to the next day or sooner.

Amazon has traditionally operated one national delivery network that distributed orders from warehouses spread across the country. If a local warehouse didn’t have the product a customer ordered in, say, Detroit, Amazon would ship it from another part of the country.

But long-distance shipping has been costlier for the company and led to increased delivery times for customers.

Amazon CEO Andy Jassy has said it is a “critical challenge” for the company to lower the cost to get products from Amazon’s warehouses to customers. So in pursuit of boosting its profitability, the company has created eight regions in smaller geographic areas designed to ship products over shorter distances.

“Each of these regions has broad, relevant selection to operate in a largely self-sufficient way, while still being able to ship nationally when necessary,” Jassy said in an April letter to shareholders.

The changes may impact which products consumers see when they search for products on Amazon’s website. Items that are closer to customers will show up higher on results pages, Amazon said.

The Wall Street Journal first reported these changes.

Jassy said the company was seeing more next day and same-day deliveries, and Amazon was on track to have its fastest Prime delivery speeds in 2023.

But it’s not clear yet how important same-day delivery is to customers. Several fast-delivery startups have cropped up to deliver customers grocery and convenience-store orders within 30 minutes, but many of them failed.

Amazon has “convinced themselves people want one-day delivery,” Michael Pachter, a retail analyst at Wedbush Securities, said in an email to CNN. “I needed Gorgonzola cheese for a recipe Saturday, [so I] actually went to the store. I don’t need same day or next day delivery for most things,” he wrote.

The more immediate benefit for Amazon may be cutting costs.

After expanding rapidly during the pandemic, the e-commerce giant cut some 27,000 jobs as part of a significant bid to rein in costs in recent months. Amazon also began charging some customers a $1 fee if they return items to a UPS store when there is a Whole Foods, Amazon Fresh grocery store or Kohl’s closer to their delivery address. (Amazon owns Whole Foods and Fresh, and has a partnership deal with Kohl’s.)

Amazon also recently started adding a “frequently returned” badge on certain products on its website for customers.

™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Cookie Monster has taken to X to express his frustration over shrinking products, aka: "shrinkflati...

Bryan Mena

Even Cookie Monster is complaining about the US economy

“Me hate shrinkflation! Me cookies are getting smaller,” Cookie Monster posted on X. “Guess me going to have to eat double da cookies!”

16 hours ago

Thousands of pounds of Trader Joe's chicken soup dumplings have been recalled due to possible conta...

Jamie Gumbrecht, CNN

Trader Joe’s chicken soup dumplings recalled for possible contamination

The manufacturer, CJ Foods Manufacturing Beaumont Corporation, said customers found hard plastic in the dumplings. 

17 hours ago

JetBlue Airways is pulling out of its deal to purchase Spirit Airlines. United and Spirit airlines ...

Chris Isidore, CNN

JetBlue pulls out of deal to buy Spirit Airlines

JetBlue agreed to pay Spirit $69 million as part of its decision to end the deal, JetBlue said.

1 day ago

Lake Powell as seen from Navajo Mountain. The Navajo Nation is asking why their request for funding...

Eric Cabrera

Navajo Nation left wondering why funding continually denied

The Navajo Nation is asking why their request for funding for a road has been denied for the last 15 years.

4 days ago

Now hiring sign...

PAUL WISEMAN AP Economics Writer

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate

Far from stumbling, the economy grew 2.5% for all of 2023, topping the 1.9% growth in 2022.

4 days ago

baby feet, utah postpartum retreat helps new moms...

Britt Johnson

Utah company aims to help postpartum moms with special retreats

The founder of Utah Postpartum Retreat said she thinks new moms are at high risk for developing postpartum mood disorders because they lack support.

4 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Amazon to change deliveries (behind the scenes) to cut shipping times