Amazon's Expedited Shipping Wins Big in Holiday Rush, Capturing Nearly a Third of Late Online Orders

Amazon.com Inc AMZN saw a significant increase in its share of online orders during the final two weeks before Christmas, reaching 29% compared to 21% during the Thanksgiving and Black Friday week. 

As reported by Route, a package-tracking app, this surge highlights Amazon's success in catering to last-minute shoppers through its reliable and rapid delivery services.

Michael Yamartino, CEO of Route, attributes this shift to consumers prioritizing on-time delivery and confidence in Amazon's delivery promises, Bloomberg reports.

The e-commerce giant's commitment to speed, as emphasized by CEO Andy Jassy, has been crucial in maintaining its edge over competitors like Walmart Inc WMT and Chinese e-commerce players Temu, Shein, and TikTok, known for their discounts but longer delivery times.

Also Read: Amazon Ramps Up Logistics Game: From AI-Driven Deliveries to Prime Video Boxing

In July, Amazon announced plans to expand its same-day delivery facilities, further enhancing its logistical capabilities. 

By the end of September, the company reported its fastest-ever delivery speeds, facilitated by strategically located inventory, Bloomberg writes. 

Amazon operates over 50 same-day delivery centers in major U.S. metro areas, handling approximately 200 million packages annually.

Prime members particularly benefit from Amazon's swift delivery, with around 70% of their orders in the U.S. arriving within two days and nearly a quarter within a day. 

In contrast, non-Prime members experience significantly slower delivery times, with less than 15% of orders arriving within the same timeframe. This efficiency in delivery has been a significant factor in Amazon's heightened order volume during the crucial holiday shopping season.

Price Action: AMZN shares traded lower by 2.17% at $145.25 on the last check Thursday.

Also Read: Amazon's AWS Pushes AI Boundaries With New Chips And Nvidia Partnership

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons