Amazon Plans to Double Same-Day Delivery Infrastructure — Retail Bum

Amazon plans to double the number of facilities that support its same-day delivery service in the coming years as it looks to maintain its dominance in the $1.4 trillion eCommerce space.

While it remains unclear how many facilities Amazon is planning to build, the plan will likely involve constructing dozens of new facilities.

“These hybrid facilities allow us to fulfill, sort and deliver all from one site, making the entire process of delivering customer packages even faster,” Amazon’s Worldwide Stores chief Doug Herrington said. “Amazon selection varies by city, as we regularly update our product offering based on what we’re seeing as top customer items purchased or based on seasonal demand in the area.”

Faster delivery is today a key selling point for Amazon’s Prime service, which delivered more than half of orders the same day or next across 60 largest metropolitan areas in the most recent quarter. And so far this year, Amazon has delivered upwards of 1.8 billion packages on the same day to Prime subscribers, marking a fourfold increase over the same period in 2019.

Still, even as Amazon has become a market leader, investors are worried about the rising costs of offering same-day delivery as the company does not have a big physical presence like…