Amazon continues to innovate and improve its delivery services to provide a better experience for its customers. Recently, the company announced the launch of its new local delivery programme called Amazon Hub Delivery, which aims to strengthen its last mile delivery network in the US.
The programme will focus on rural areas and will operate in 23 US states at an initial stage. However, Amazon has ambitious plans to expand to larger cities such as Seattle, New York, Los Angeles, Boston and Hoboken, New Jersey at a later stage. One of the standout features of Amazon Hub Delivery is its focus on partnering with local small businesses. Amazon plans to work with approximately 2,500 small businesses before the end of the year.
The idea is that these businesses will become a key part of the last-mile delivery chain, collaborating with Amazon to provide a closer and more efficient service to customers. What is notable is that Amazon is not requiring small businesses to have prior delivery experience to participate in the programme.
However, it is important that they have the capacity to make daily deliveries and have their own staff and vehicles to carry out deliveries. They are also expected to be able to receive parcels on a daily basis and keep them safely stored until delivery. As for payment, Amazon has not disclosed the exact figure, but it is estimated that businesses could earn up to $27,000 per year by participating in the programme. For example, if a business makes approximately 30 deliveries a day, seven days a week (excluding holidays), they would receive a fee of around $2.5 for each package delivered.
The diversity of businesses that will be able to take part in this programme is impressive. From florists to coffee shops to clothing shops, Amazon is looking to collaborate with different types of local businesses to boost last-mile delivery. Beryl Tomay, vice president of Amazon Last Mile Delivery and Technology, noted that the programme will offer exciting opportunities for delivery partners looking to grow their businesses and increase revenue.
This concept of local delivery is not new to Amazon. In fact, it originated in India in 2015 with the “I Have Space” model. Since then, the programme has spread to countries such as Japan and Spain. In the US, it was piloted in late 2020 and now, with Amazon Hub Delivery, the company is looking to expand this successful initiative to further enhance its last-mile delivery network. In an increasingly digitised world, speed and efficiency in delivery have become key factors for success in e-commerce.
With Amazon Hub Delivery, the company not only shortens geographical distances, but also builds closer ties with the local business community, creating a stronger and more sustainable delivery network.
The company reflects its ability to adapt to changing consumer needs and its unwavering commitment to innovation. This programme will undoubtedly open up new business opportunities for small businesses, while enhancing the shopping experience for millions of customers. Save time in this process with our platform where Amazon sellers can save 60% time in optimising product detail pages, be 50% more effective following Amazon’s Style Guidelines and increase their sales by 30%. Get a free audit and start optimising your listings now! Take advantage of it.