Amazon to get even faster with this new move
It's sending workers directly into supplier warehouses to fill orders for diapers and other items on the spot.
The Internet shopping giant has set up small distribution units inside the warehouses of major consumer goods manufacturers, including Procter & Gamble (PG).
Amazon workers receive goods directly from the manufacturer and fulfill customer orders on the spot. Amazon calls the program "Vendor Flex." By leveraging the manufacturers' distribution systems, the retailer reduces its own logistics costs, The Wall Street Journal notes.
Sources say that Amazon is currently in talks to open fulfillment operating in the warehouses of other companies including Georgia Pacific and Kimberly Clark (KMB).
While Amazon is trying to boost consumer goods sales, everyday household items still comprise a tiny portion of online sales -- just 2%, according to analysts. However, the market has the potential to grow sharply in coming years.
Shares of Amazon fell nearly 1% Tuesday to trade at $307.65.
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IT'S ALREADY FAST. I ORDERED SOMETHING ON-LINE TODAY AND IT'S HERE ALREADY.
OOOPS, THAT WAS A JIMMIE JOHN SAMMICH.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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