- Amazon CEO Andy Jassy explained how the company is able to deliver so many shipments to customers on the same day the order is placed.
- According to Jassy, Amazon has found that delivery speed meaningfully changes customers’ conversion rates and the rate at which they’re willing to buy.
Amazon CEO Andy Jassy told CNBC’s Jim Cramer how the company has been able to increasingly carry out same-day orders.
Amazon changed its U.S. fulfillment network from a “flat regional network” to eight regional hubs, reconfiguring its placement algorithms to get items closer to customers, he said. He added that the company also uses “sub same-day facilities” to ship items faster, saying many fulfillment centers have “about a million” SKUs — or stock keeping units, product identifiers used by retailers — ready to be shipped out same-day.
“We were not only able to take the transportation distances down,…
