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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Amazon Plans to Upgrade their Delivery System

Photo: Amazon
Photo: Amazon Photo: Amazon
Photo: Amazon
Photo: Amazon Photo: Amazon

Amazon is working to recruit everyday people to deliver packages to its shoppers. The way it would work is that everyday people could pick up the packages from certain shopping locations and then the person would deliver it.

According to The Wall Street Journal, who broke the story, this is just in the beginning stages of being discussed, and internally the company isn’t even sure if it will launch. It is clear that there would be a lot of things to work out when planning this: delivery time, availability, paying their delivery people and the interview process alone to make sure that the person was qualified to do it.

This business model is similar to that of Uber, which has come with its own set of problems.

According to The Wall Street Journal,

“Last year, Amazon briefly tested delivering packages in San Francisco via yellow cabs and Uber vehicles, paying about $5 per parcel. It was a limited experiment to gauge the feasibility and cost of such deliveries and wasn’t expanded, people familiar with the matter said.”

This was back in November, and at the time Amazon had reportedly been working on strategies to get packages as quickly and effectively to shoppers. The budding idea is being referred to as “On My Way.”

Amazon has come a long way with their delivery services, including memberships for two-day shipping and same or next day delivery of groceries. However, all of these deliveries come at a price.

According to The Wall Street Journal,

“The fee structure for ‘On My Way’ was recently still being worked out including whether Amazon would pay with cash or credits to be used on its website, the people said.”

The price of delivery would also be a concern, as well as how the packages would arrive to the delivery people. This type of delivery will not interfere with the drone delivery that Amazon has been working on for over a year and a half.

With this type of delivery, Quartz reported that,

“The company has previously said it wants to be able to deliver packages to members of its Prime discount shipping club within 30 minutes of an order.”

This has come with its own mess of problems, like clearance from the Federal Aviation Administration. As of now, Amazon has same-day delivery in Atlanta, Baltimore, Boston, New York, San Francisco, Washington, Los Angeles, Dallas, Indianapolis and many others.

For Prime customers who spent over $35, delivery is free. For Prime customers who spent under $35, there’s a charge of $5.99 per order and for non-prime users, the cost is $8.99, and then an additional $0.99 per item.

Along with these prices are also deadline restrictions, so pay attention before you place your order.

According to Gizmodo,

“The key is for Amazon to be able to conduct lighting-fast cost-savings analysis for each outgoing package: It’s not only deciding which deliveries to bundle into a single cab, geographically, but also how long to hold certain packages before they should simply go out in a cab alone.”

Amazon has discussed their employees picking up the packages from their fulfillment centers. As of now, Amazon has these centers in places like Arizona, Kansas, California, Nevada, Pennsylvania, New York, New Jersey, Texas and several others.

Amazon has big dreams for its company and delivery systems, there are still a lot of things that need to be worked out. Although these dreams could benefit a lot of shoppers in the future, it seems that we will be waiting a while to reap the benefits.

 


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