Map shows Amazon can already ship to 72% of US population in a day: this raises 2 questions who will be able to compete with Amazon on cost effective #eCommerce distribution logistics and who will …

As Amazon starts to roll out one-day shipping to its most loyal customers, it already has a logistics network spanning much of the U.S.

  • Amazon is already capable of offering same-day and one-day delivery to 72% of the total U.S. population, according to RBC Capital Markets.
  • The vast delivery network is a result of significant investments over the past four years.
  • Amazon said on its latest earnings report that it’s making one-day delivery the default for Prime members.

Sourced through Scoop.it from: www.cnbc.com

WHY IT MATTERS: delivery is the final frontier in eCommerce and Amazon has made it a lot more expensive for retailers to compete. Who else has a network of distribution centers like this? Walmart? Kroger and other large grocers? They should invest in marketplace technologies to let smaller retailers leverage their distribution network because otherwise, HOW ARE SMALL RETAILER GOING TO COMPETE AGAINST AMAZON?

Once this battle is won by Amazon the last remaining blocker will be last-mile delivery and here UPS-FEDEX-USPS-CanadaPost-etc. are not making moves to cut down on costs so the land is open for a cost effective solution to emerge. Self driving cars? maybe? bringing back the milk runs? maybe.

Any ideas or solutions that come to mind?

Farid Mheir
farid@mheir.com