Amazon’s New Cost-Cutting Measure: E-commerce giant to pay shoppers to skip door-step delivery
Amazon’s New Cost-Cutting Measure: E-commerce giant to pay shoppers to skip door-step delivery
Amazon has initiated a program offering select US customers $10 if they collect their orders instead of having them delivered to their doorsteps, according to a new Reuters report.
A few Amazon Prime subscribers have been sent emails over the past few days informing them of the $10 refund for orders over $25, if customers collect their deliveries from locations including Kohl’s, Amazon Fresh, and Whole Foods stores. It is unclear how many Prime subscribers have been contacted by Amazon.
As e-commerce businesses look for ways to reduce the expenses of home delivery, Amazon hopes to increase the use of its pickup points. This move could help the company avoid the high cost of residential package deliveries.
Also read: Amazon workers in UK to strike for six days in April
According to shipping consultant Dean Maciuba, who is based in Upstate New York and was cited by the news agency, “provide a significant opportunity for Amazon to reduce delivery expenses.” However, e-commerce companies are also dealing with sluggish customer demand.
According to Maciuba, who was one of the customers offered the $10 incentive, the program also has the advantage of training customers to return items directly to Amazon. Additionally, Amazon has recently started charging some customers a $1 fee if they return their purchases to a United Parcel Service store, even if there is a closer Amazon pickup-return location available.
Amazon has long been known for its speedy and free deliveries and returns. However, the company’s latest quarterly report in 2022 showed a slowdown in growth and tight margins. Consequently, Amazon is having to reduce its costs after a period of rapid expansion.
To lower expenses related to deliveries, Amazon has implemented several measures. In the previous year, the company raised the price of its annual Prime subscription, which offers free shipping benefits, by $20 to $139.
It also increased the minimum order amount for free grocery delivery, promoted the idea of having all packages delivered on a particular day of the week, and expanded its same-day delivery service for a charge on orders under $25.
Earlier this year, Amazon announced that it would cut 9,000 more jobs, on top of the 18,000 positions it had previously stated would be eliminated. These actions are all part of Amazon’s efforts to reduce costs and enhance efficiency.
Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
What's Your Reaction?
