Amazon is planning on offering a premium ‘same day delivery’ option for its US customers, in a move that could put further pressures on ecommerce firms and high street retailers alike. The online retail giant is looking to expand its network of US warehouses so it can place its merchandise nearer to big markets and […]
Amazon is planning on offering a premium ‘same day delivery’ option for its US customers, in a move that could put further pressures on ecommerce firms and high street retailers alike. The online retail giant is looking to expand its network of US warehouses so it can place its merchandise nearer to big markets and offer same-day delivery to more consumers. The firm currently has 34 in the US.
The company is spending millions of dollars on new distribution centres in the US; in California alone, Amazon plans to spend US$500 million (£325 million) and employ 10,000 new staff.
These local warehouses will service major urban centres and allow same day delivery to become a reality for millions of Americans.
According to the Financial Times, the firm is opening warehouses in New Jersey and New York, with plans to open more in California, Texas and Virginia.
The scheme means that the online retail giant is moving away from its long-standing business model of locating distribution centres in low-tax regions and is instead introducing a taxable presence within populated areas.
However, some critics say that the move towards same-day delivery will pose a real threat to local retailers, many of whom rely heavily on being the only outlets able to offer an instant purchase.
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