Wednesday, July 11, 2012

Amazon's Same-Day Delivery Strategy

Now that Amazon has given in on the sales tax issue, it has decided that it should leverage its new "nexus" in populous states with a strategy of same-day delivery on most purchases (for a small surcharge), based on a bevvy of new state-of-the-art warehouses (using picking robots from newly acquired Kiva Systems) it is building in New Jersey, Virgnia (2),Tennessee, Texas, and California (2) costing over $500 million. Ten more states will see new Amazon warehouses in the next three years, employing 10,000 people.

For details on this and other possible Amazon delivery strategies (such as PIN-accessed lockers in drug and convenience stores), see this article in Slate.

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