Amazon’s (NASDAQ:AMZN) commitment to improving delivery speed serves as a significant force in attracting more users to its platform. Thanks to its swift delivery offerings, Amazon’s share of online order volumes spiked in the final days of the holiday season, according to a Bloomberg report.
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Per the report, which cited data from Route, a package-tracking app, Amazon’s share of global order volume surged to 29% in the last two weeks leading up to Christmas, marking an increase from 21% during the week of Thanksgiving and Black Friday.
Fast Delivery Is Crucial to AMZN’s Strategy
Highlighting the significance of fast delivery, Amazon’s CEO Andrew Jassy said during the Q3 conference call that the e-commerce company is on track to deliver the quickest delivery speeds for Prime customers in its 29-year history. Underscoring the critical role of swift delivery, Jassy noted a substantial uptick in the demand for consumables and everyday essentials. Furthermore, he emphasized that fast delivery leads to higher order frequency.
Amazon transformed its fulfillment and transportation framework by creating eight regional hubs, each serving more localized areas instead of relying on a singular national network in the United States. This strategic shift is enhancing the speed and cost-effectiveness of deliveries. Additionally, AMZN is expanding the range of products available for free shipping to Prime members, contributing to increased customer traffic.
Is Amazon Stock Expected to Go Up?
Amazon is poised to benefit from higher consumer spending during the 2023 holiday season. Earlier, a Goldman Sachs survey showed that Amazon was one of the top shopping destinations for shoppers during the 2023 holiday season.
Further, Wall Street analysts are also bullish about AMZN. The stock has 42 unanimous Buy recommendations for a Strong Buy consensus rating. Amazon stock has gained nearly 74% in one year. Moreover, the analysts’ average price target of $183.28 implies it could increase by 26.78% from current levels.
