What does the arrival of Amazon Logistics mean for its distribution model – and what are the implications for other retailers?
To remind you, Amazon , the well-known etailer, has leased a number of small delivery stations to act as a hub for deliveries in their local area. The sites, typically of around 50,000 sq ft, are to be found in Birmingham, Oxford, Milton Keynes as well as a number of London locations.
So far, says Amazon, some 170 new jobs have been created, and 75 more will be created when four new delivery stations open next year in the North West, the South West, the Midlands and Yorkshire.
Regional delivery partners, such as CitySprint, work with Amazon to take items from the delivery depots directly to the customer.
An Amazon spokesperson said: “These stations provide more capacity and flexibility within our delivery network and will fulfil orders across all Amazon’s delivery options including free super saver delivery, express delivery, evening deliveries and Amazon Prime.”
Since Amazon, which remains the UK’s most visited website, has played such a large role in developing the ecommerce market in the US and the UK, retailers will be watching with interest as it develops its supply network. So what does this mean, both for Amazon and for other retailers?
Andrew Starkey, the IMRG’s [IRDX VIMR] head of e-logistics and lead consultant and founder of Spiral4, a postal and e-logistics consultancy, says the move brings stock closer to the consumer and cuts down delivery times. It also brings same-day deliveries within striking distance for the etailer, something that as yet has only been achieved by multichannel retailers delivering from the stock held in their stores.
“It will enable later order acceptance and shorter and more specific delivery times,” said Starkey.
“If the order is for delivery from a regional depot to a ‘local’ shopper, the delivery request can be accepted later, even same day as delivery and to a specific time slot – CitySprint is a same day carrier.
“That would impact the high street because instead of going to the shop to get the order today or going to the shop because you only have a specific time window when you will be home, you can have it delivered instead and save the trip.”
