Starting 1 May, American internet giant Amazon intends to use a distribution center in Berlin’ to deliver packages within two hours after the order is made. The goal is to increase its German market share, which is currently at 25 %.
Delivery 6 days out of 7
The Americans want to build their local distribution center in a former electronics wholesale building on the Kurfürstendam, a famous street in Germany’s capital. The fast delivery service will employ local couriers that work six days out of seven, according German paper Die Welt’s unconfirmed sources. The new distribution center will house 10,000 products from Amazon’s online web shop and is focused on customers in Berlin who use the Prime Now program to order items.
Estimates say Amazon Germany has a 25 % online market share, but it hopes to increase that percentage with faster delivery services, free shipping and a free return policy. This new distribution center would fit its strategy to speed up deliveries, like when it opened a new distribution center in Olching, which was designed to deliver orders within the hour. Amazon will do the same in Munich later this year, while there are also plans for a distribution center in Hamburg.
This German strategy is based on Amazon’s American strategy, where it already delivers within the hour in several cities, provided the order is made through its Prime Now subscription program. In the United Kingdom, London and Birmingham can also use this speedy service, although there is an additional fee involved here.
