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Amazon Beefs Up Same-Day Delivery in Classic Amazon Style

Amazon is leveraging its expertise in same-day delivery by opening up Prime Now to other companies, adding value to the service. Amazon Prime Now is now offering 1-hour delivery from local stores in addition to the tens of thousands of items already offered through the service, which is available to only a few urban areas for now.

It means Amazon Prime customers can purchase groceries, prepared meals, and baked goods and have them delivered in one hour, giving them another reason to join Prime and download the Amazon Prime Now app to their smartphones.

It’s classic Amazon, which has leveraged its expertise in running an ecommerce marketplace in a number of ways, including AWS for website hosting; and Fulfillment By Amazon for warehousing and fulfillment.

Amazon is rolling out local store delivery through Prime Now in Manhattan and will continue to add stores and expand geographic coverage. Amazon Senior Vice President of Worldwide Operations Dave Clark said Amazon would soon add local stores in other cities where it offers Prime Now. In addition to Manhattan, Prime Now is currently available in Atlanta, Austin, Baltimore, Brooklyn, Dallas, and Miami.

To purchase from local stores, customers use the Prime Now app, available on iOS and Android devices. Through the service, two-hour delivery from local stores is free and one-hour delivery, available in select zip codes, is $7.99.

eBay and Google have tried to play in the same-day delivery space, but if any company has the logistics experience and capability to make it a viable model, Amazon is the most likely.

But what may have come as a surprise was the news last week about how Amazon is fulfilling its 1-hour promise – the subway. The Financial Times wrote, “Two delivery workers pushing large trolleys of Amazon parcels on the subway said the company was using underground trains for most Prime Now deliveries because traffic on Manhattan’s gridlocked streets made it impossible to honour a 60-minute guarantee.”

More information about the Prime Now service is available on the Amazon website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.