Amazon optimises delivery to cut cost

Oluwanifemi Ojo
Oluwanifemi Ojo
Amazon

E-commerce company, Amazon has announced that it has optimized its delivery network after the COVID-19 pandemic to improve delivery speed, reduce costs, and lower carbon emissions.

The renowned online retailer has managed to reduce delivery times by reshaping its inventory management system and search capabilities to show customers the products closest to them.

According to Reuters, this has led to a decrease in the number of touchpoints products go through before delivery by 12%.

During this period, when demand is slacking and consumer demand is low, Amazon and other online retailers are taking measures to reduce home delivery and return costs.

To this end, Amazon has announced that it is offering US customers $10 to pick up their purchases instead of having them shipped to their home addresses.

This move is part of Amazon’s cost-cutting efforts, which have intensified as the company tightens its belt after a period of explosive growth.

Amazon has made significant efforts to reduce delivery-related costs across the company as it tries to adapt to changing market conditions.

These efforts include reshaping its inventory management system, and search capabilities, and offering incentives for customers to pick up their purchases.

Considering this new development, it is clear that Amazon’s optimized delivery network is expected to increase efficiency, lower costs, and reduce the company’s carbon footprint.


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