7 Business Lessons from Amazon's Move to Improve Same-day Deliveries

In September, Bloomberg reported that Amazon is fast planning to put 1000 warehouses (small shipping hubs) in the suburban US - these will be approx. 100k Sq ft as opposed to the 1m Sq ft warehouses we are used to. This move is to make significant inroads into same-day deliveries that Target and Walmart are known for.

This plan is a major Warehouse expansion and different from their usual model- previously they had warehouses on the far fringes of population centres an hour or two drive from outside of town. Now the warehouses are planned closer to home and closer to traditional retail facilities. 

The plan is to have this as holding stations for the packages and huge parking lots for the vans that deliver them. This is happening at an excellent time when the norm is wide delivery times – irregular and sporadic deliveries. 

Some lessons out of this; 

1. Innovation cannot be stopped by challenges:

Amazon is progressing towards same-day delivery in the midst of worldwide logistics challenges.

2. Customer is king and what customer wants is key:

Driven by needs, superior customer experiences can change.

3. Speed to market, Direct to consumer remains the opportunity:

Know your market and use the knowledge to deliver value.

4. Ratio of parking lot to building space is now larger;

To grow and expect different results, do things differently 

5. Understand your model 

Amazon has made room for Flex drivers that deliver amazon packages instead of people. Also creating room for vehicle staging and room for delivery vans.

 6. Inventory is important.

They have selected fast-moving items for same-day deliveries and will now compete with brick & mortar stores while maintaining the other model which leads to the final lesson

7. Flexibility:

Stay within your strength while trying new areas.

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