The world’s largest marketplace just took another step toward delivery ubiquity.
Amazon (NASDAQ: AMZN) wants to deliver anything, anywhere, anytime, and on Monday the e-commerce giant announced the launch of a new option for same-day shipping of products from local retail stores. The service, first reported in May, is available to Prime members in and around Atlanta, Chicago, Dallas, Las Vegas, Miami, Phoenix, Seattle, Washington and other U.S. cities.
For now, only a few retailers are available on the platform, namely PacSun, GNC, SuperDry and Diesel. The service is free for Prime customers who spend $25 on their order and $2.99 for those who spend less. Amazon noted in a blog post that some brands will offer the option for buy online, pick up in store.
While Amazon has offered same-day delivery services for years, store-to-door deliveries from local retailers are uncharted territory for the e-commerce powerhouse.
“We are excited to see this new model come to life and look forward to adding more brands, stores and locations to the program,” said Sarah Mathew, director of Amazon delivery experience.
In eligible ZIP codes, Prime members can shop retail stores in their area on Amazon.com or the Amazon app. When they select the same-day delivery option at checkout, Amazon sends the order to the store, where it is fulfilled by a store associate. Then, an Amazon delivery partner picks up the order and delivers it straight from the store to the customer’s residence.
As initially reported, Amazon was testing its new same-day option using gig economy drivers from Amazon Flex to deliver from shopping centers. Monday’s announcement provided more clarity — all 24 participating stores for the new service are in shopping malls, but there was no mention of Flex drivers being involved.
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“We see high potential in our expanded seller partnership with Amazon, which includes delivery directly from select PacSun retail locations,” said Mimi Ruiz, vice president of e-commerce at PacSun. “This is one more way for us to offer our customers the styles they want and love, when they want them.”
While PacSun is one of the service’s early members, Amazon sees it as the tip of the iceberg. The company added that retailers Sur la Table and 100% Pure will join in the coming months, and it plans to expand into more U.S. cities this year.
While it appeared that the massive marketplace was faltering earlier this year due to an e-commerce pullback, it’s rebounded over the past few months. After facing a wave of facility delays and closures and a less-than-spectacular first quarter, the company turned in a strong Prime Day and began construction on some of its largest warehouses yet.
After reporting earnings for the second quarter of 2022 last week, Amazon shares soared on the news of strong top-line growth. Investors were willing to forgive the firm despite another net loss owing to its deal with electric vehicle-maker Rivian.