Key Moments
- Amazon introduced 1-hour and 3-hour shipping in U.S. markets, including major cities like Los Angeles and Chicago.
- The 1-hour service covers more than 90,000 items and uses Amazon’s existing same-day delivery infrastructure, with grocery options available in select areas.
- Prime members pay $9.99 for 1-hour delivery and $4.99 for 3-hour delivery, while non-Prime customers are charged higher fees.
Amazon Accelerates Delivery to Counter Walmart
By Arriana McLymore
Amazon is intensifying its logistics push by launching 1-hour and 3-hour shipping services across multiple U.S. markets, including Los Angeles and Chicago, as it works to defend its e-commerce position against Walmart.
Fast delivery has been central to Amazon’s strategy to drive larger order sizes and increase how frequently customers shop on its platform. In December, the company unveiled a separate offering, “Amazon Now,” which focuses on delivering groceries and everyday necessities in 30 minutes or less in select locations such as Seattle and Philadelphia.
Expanded Coverage and Product Range
The Seattle-based company said on Tuesday that the new 1-hour shipping option is now available on more than 90,000 products, spanning categories including everyday essentials, toys and toilet paper. The service is layered on top of Amazon’s existing same-day delivery network.
The 60-minute delivery window has been introduced in large metropolitan areas across the United States as well as in smaller markets like Boise, Idaho. The 3-hour delivery option has been rolled out more broadly, reaching more than 2,000 cities and towns. Perishable grocery items are available in certain locations, according to Amazon.
“We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members,” Amazon Senior Vice President of Worldwide Operations Udit Madan said in a press release.
Operational Changes to Support High-Speed Delivery
To meet the compressed delivery windows for the 1-hour and 3-hour services, Amazon has reconfigured parts of its same-day network. The company has created designated work stations within existing same-day facilities specifically for these rapid orders. It has also introduced yellow labels on packages so they can be quickly identified and handled, and updated signage throughout the sites to guide delivery partners more efficiently.
Pricing Structure for Prime and Non-Prime Customers
Access to these accelerated services carries an added cost. Prime members are charged an additional $9.99 for 1-hour delivery and $4.99 for 3-hour delivery. Customers without a Prime membership pay $19.99 for 1-hour orders and $14.99 for 3-hour deliveries.
| Customer Type | 1-hour Delivery Fee | 3-hour Delivery Fee |
|---|---|---|
| Prime members | $9.99 | $4.99 |
| Non-Prime customers | $19.99 | $14.99 |
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