Inside Logistics

Amazon working to consolidate shipments

Prime Day program allows customers to group shipments

March 4, 2019

SEATTLE —As part of its sustainability initiatives, Amazon is allowing Prime members to group their shipments together on one day of the week. The company aims to make all shipments net zero carbon, with 50 per cent of all shipments net zero by 2030.

The company trialled the program with a group of Prime customers and, according to Maria Renz, vice-president, delivery experience, it has “already reduced packaging by tens of thousands of boxes – a number that will only continue to grow.”

The eCommerce giant was not willing to quantify the savings or number of shipments the program is expected to eliminate.

“From Amazon’s perspective, while this move is admirable in potentially reducing the company’s carbon footprint, this move is also about reducing shipping costs,” says Danielle Roberts, senior product manager, Kibo, in an email to Inside Logistics.

“It’s common knowledge that Amazon loses money on two-day shipping, yet they’re willing to take that loss to win market share and drive out competition. However, eventually Amazon will need an exit strategy from this exponential growth strategy and toward profitability. Amazon is making a bet that a significant number of their shoppers will find this service more convenient than two-day shipping.”

So far the program is only available in the U.S. and an Amazon spokesperson said it is evaluating the “benefits of rolling out new delivery programs for customers across the globe”.

Amazon announced its “Shipment Zero” program in February 2019, promising to share its “company-wide carbon footprint, along with related goals and programs, later this year.”

The company says it has pursued an extensive project over the past two years to develop an advanced scientific model to map its carbon footprint as a guideline to help it meet reduced carbon targets.