Key Points
- Amazon reported that delivery times to its Prime members in the second quarter were the fastest ever.
- More than half of its packages were delivered the same or next day in the largest 60 metropolitan areas of the United States.
- Amazon attributes the speed to changes in logistics, technology and the growth of the delivery network.
Amazon (AMZN) announced on Monday that it had the fastest deliveries ever to its Prime members last quarter.
Doug Herrington, CEO of Worldwide Amazon Stores, said that in the 60 largest metropolitan areas in the United States, more than half of Prime member packages arrived the same day or the day after they ordered.
It added so far this year, 1.8 billion units were shipped to U.S. Prime members the same or next day, more than four times what was delivered at those speeds before the pandemic in 2019.
Amazon has achieved faster shipping times by dividing the country into smaller, easier-to-reach regions, using machine learning technology to better predict shopping trends, and expanding its network of same-day delivery,” Herrington explained.
By making these changes, Amazon also cut costs, which helped customers save money, he said.
The actions of Amazon rose 1.1% on the news and traded around their 2023 highs. 
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Source: investopedia.com