Amazon is investing hundreds of millions of dollars in warehousing and infrastructure so it can implement “same-day delivery” to the major metropolitan areas in the USA, according to reports.
A fascinating piece on slate.com by Farhad Manjoo (which is well worth reading in full for lots of interesting reasons) says: “Amazon is investing $130 million in new facilities in New Jersey that will bring it into the backyard of New York City; another $135 million to build two centers in Virginia that will allow it to service much of the mid-Atlantic; $200 million in Texas; and more than $150 million in Tennessee and $150 million in Indiana to serve the middle of the country. Its plans for California are the grandest of all. This year, Amazon will open two huge distribution centers near Los Angeles and the San Francisco Bay Area, and over the next three years it might open as many as 10 more in the state. In total, Amazon will spend $500 million and hire 10,000 people at its new California warehouses.”
This is truly awe-inspiring stuff and a real wake-up call for ecommerce sellers everywhere. Once again, Amazon is raising the bar on delivery times. The next-day service here (which I praised last year to some criticism from eBay sellers who commented) is already impressive. But to imagine a same-day service, say, in London and the locale is fascinating.
The Slate.com piece predicts “Amazon’s ambitious new push for same-day delivery will destroy local retail.” That seems like a bold, but plausible, assessment.
