Amazon optimises delivery network for speedier delivery, lower costs

Amazon.com Inc said it has optimised its delivery network coming out of the Covid-19 pandemic, allowing it to increase delivery speeds and lower costs, while also reducing the ecommerce giant's carbon emissions.

The online retailer on Saturday (May 13) said it has reduced delivery times, reshaped its inventory management system as well as search capabilities to show customers items closest to them, leading to products reaching 12 per cent less touchpoints before being delivered.

At a time of slack consumer demand, Amazon and other online retailers have also been making efforts to slash costs for home delivery and returns.

Amazon this week said it was offering US customers US$10 (S$13.38) to pick up a purchase rather than have it shipped to a home address. As the company tightens its belt after a period of explosive growth, it has made numerous moves to reduce delivery-related costs across the company.

The ecommerce company's move was first reported by the Wall Street Journal on Saturday.

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