Amazon has accomplished a major milestone by delivering 1.8 billion units to U.S. Prime members on the same or next day in 2023, four times more than in 2019. Despite challenges during the COVID-19 pandemic, the company has invested heavily in improving its warehouse and delivery network to achieve faster shipping times and largely restored normal delivery speeds. Amazon changed significantly from a national "hub and spoke" fulfillment network to eight smaller regional divisions with local facilities holding frequently ordered products. This shift has been more cost-effective and has led to improved delivery speeds, with a 15% reduction in package travel distance and a 12% decrease in touchpoints. Improved machine-learning technology has also helped Amazon optimize warehouse inventory placement, further hastening delivery times. As a result of faster delivery, customers have expanded their purchases with Amazon, choosing the platform over local stores or big-box retailers for a wider range of items.
