The Prime Now is expected to have ties with Amazon.com next month.
It appears that Amazon.com, Inc. has many positive responses from its offer Prime Now, and so it plans to make it bigger. It was reported that the e-commerce titan aims for an expansion of its fast delivery service by integrating it with the own website of the company, effective in May.
Amazon has continued to improve its delivery efforts since long. As part of the plan, the Prime Now service was released in December 2014. The offered service was ideally launched in New York alone, but it grew vastly and was expanded in over 20 US cities and in London.
Subsequently, the service was also expanded and deliveries were added from local stores as well as restaurants away from Amazon warehouses. Users of the $99 Amazon Prime have received free two-hour delivery, while it costs $8 for the one-hour delivery.
Ahead of the wide-range delivery push, a part of it includes ambitious projects like the use of drones for delivering items in less than 30 minutes. However, it is likely that these projects would clearly take some time.
Meanwhile, the company has clearly stated to use its Prime Now service as a fundamental part of its growing business.
Prime Now is an app that can only be used on smartphones, which puts it on the secondary platform. The owned website of the company serves as its primary platform, which comprised of a bigger audience.
Since most of the users are uncertain to download the app, the company has thought of putting it on the primary platform instead. Mobile shopping would still be part of the revenue, the EMarketer said.
It was reported that the mobile shopping is anticipated to expand about $96.2 billion in the US this year, which would take part a quarter of all e-commerce revenue.
Conversely, the e-commerce giant tries every way in order to boost its promotion in its fast delivery service. As part of the expansion plan, the company has sold numbers of promotional deals from a few major brands. The promotional initiatives were relative to the ad revenue as well, which is considered as a major source of income for the firm.
The tech giant involves a large customer base and it is currently getting more aggressive in charging brands to promote their offered product on its own website. In addition, a lot of advertisers are also interested as part of the Web launch.
Moreover, one of the advertising deals in rolling something out includes “Launch Hero Package,” which is expected to cost $500,000 for placement for two weeks on the website of Amazon. The given price includes promotional emails that will be sent to customers, which has a standalone value of $100,000 according to the company.
Thus, Amazon Prime Now is regarded as a booster of the company’s initiative to improve its own delivery service. While the e-commerce giant has tied with several delivery providers across the world, is aiming to transform its own in order to become a delivery service provider too, and dependency on others wouldn’t be necessary.
The company has acquired the French delivery company Cols Prive in January in order to run its deliveries in France. As part of the in-house delivery system plan, about 20 Boeing 767 aircrafts were leased last month from Air Transport Services Group.