In addition to enabling Prime members to get the products they want and need even more quickly, Amazon’s accelerating delivery speeds are helping small and medium-sized businesses succeed in our store, with the majority of these 5 billion items delivered on behalf of independent sellers using Fulfilment by Amazon. More than 60% of sales in Amazon’s store come from independent sellers.
Prime has grown over the years to include savings, convenience, and entertainment all in a single membership. Members enjoy exclusive deals and shopping events like Prime Day, as well as benefits like Prime Video and Amazon Music, and great savings with exclusive access to deals every day. But fast and reliable delivery across a wide selection of products remains the foundation of our offer and an enduring priority for us. We’ve evolved to make customers’ lives easier, allowing them to shop for things they need and love in our store and get it quickly. But we won’t stop there.
So how have we achieved our most efficient delivery service to date, and what are our plans to keep improving from here:
Leveraging AI and technology to place products closer to customers
With the help of AI, we’re able to expand the selection of products that we keep as close as possible to customers, stocking more everyday essentials that our customers order and re-order consistently (think kitchen roll or dog food, for example). This means more customers can get the items they want more frequently even faster. As part of this, we’re evolving how products come into our fulfilment centres from vendors and our selling partners. In 2023, we spent a lot of time making sure the products that leave our buildings get out faster and more efficiently. This year, we’re making sure the same is true for the products we receive. The goal is for our operations teams to have a better sense of what inventory – and how much of it – is coming in, which will allow them to align that inventory to what customers in that particular region want and need, helping to make our whole process more efficient. In Europe, we shortened the average distance each package traveled within our middle mile network by 25 kilometres in 2023, compared to 2022.
Investing in advanced technologies across Amazon’s European fulfilment centres
Established in 2017, the lab serves as the hub for the global Mechatronics & Sustainable Packaging team. This team was formed in 2019 and by the end of 2024 will have been responsible of the installation of over 1,000 new robotics and AI-powered innovations throughout our European fulfilment centre (FC) network, representing an investment of more €700 million. These cutting-edge technologies encompass item sorters, pallet movers, and automated guide vehicles, actively supporting Amazon employees in their roles across our sites. Robotics and technology play a crucial role in enhancing our operations network, while AI enables us to scale these advancements for a global operation serving millions of customers worldwide. With each technology comes different skill requirements, and in many cases the creation of new specific roles. In fact, over 50,000 jobs in FCs across Europe have been enhanced by the introduction of new technologies over the last decade which support employees in their roles, providing them with a safer working environment and upskilling opportunities. At the same time, robotics and AI-powered innovation improve price, selection, and convenience for our customers.
Improving our Same-Day Delivery capabilities
Fast, free delivery is the foundation on which Amazon has built Prime and since 2014, Amazon introduced a Same-Day service in Europe, enabling customers to shop for their last-minute ‘need-it-now’ occasions and get products conveniently delivered at their door in as fast as a few hours and with a less than 24 hour promise. Same-Day Delivery is currently available in more than 150 cities across Europe. The service is free for Prime members on eligible orders (above a certain order amount) and with a fee for non-Prime members. In 2024, we will continue investing for our customers, expanding the service to more cities across Europe and accelerating Same-Day speeds.
Building a fleet for more sustainable deliveries
We have thousands of electric delivery vans on the road across Europe, and micro-mobility hubs in 20 cities, including London, Paris, and Munich. In 2022, we delivered more than 120 million packages by more sustainable modes of transportation (EVs and micro-mobility). All delivery bags, envelopes and boxes across Europe are 100% recyclable.
Prime Air Drones delivering in 2024
The newest Prime Air drone, the MK30, has been unveiled as part of the latest expansion to the Prime Air programme, and it’s unlike any other drone being used for package delivery. The drones will be deployed in soon-to-be-revealed destinations in the UK and Italy.
We are delivering faster speeds while also improving the overall safety of our employees. Delivering packages faster isn’t a matter of moving faster within our facilities—it’s being smarter about our structure and product placement. That means we’ll continue to make our workplaces safer, even as we get faster.
Our global recordable incident rate (RIR) – which includes any work-related injury that requires more than basic first aid treatment – has improved 30% over the past four years, and our global lost time incident rate (LTIR) – which includes any work-related injury that requires someone to take time away from work – has improved 60% over the past four years. Our latest safety metrics represent measurable and meaningful progress and are a direct result of more than $1 billion invested in safety initiatives, technologies, and programmes since 2019. In 2024 alone, we’ve allocated $750 million to further our safety efforts, with a focus on ergonomic improvements.
What was true when Amazon was founded remains true today: Customers want vast selection, low prices, and fast delivery. We’re expanding selection and delivering faster than ever. And we’re committed to keeping investing and inventing to deliver on those core customer values.
