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Amazon in 2Q17: Bookstores, Logistics, and Whole Foods

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Part 9
Amazon in 2Q17: Bookstores, Logistics, and Whole Foods PART 9 OF 20

Why Amazon Altered Its Book Delivery Schedule

Amazon speeding up book delivery 40%

Amazon (AMZN) recently asked booksellers on its marketplace to significantly reduce the time customers have to wait to get the books they ordered, according to a CNBC report.

Under the new schedule, Amazon is requiring booksellers to ensure they deliver their items to customers within four to eight days. The delivery schedule being replaced allowed sellers up to 14 days to fulfill book orders. As such, Amazon’s new schedule would increase book delivery time ~40%.

Why Amazon Altered Its Book Delivery Schedule

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The rationale behind the move

Amazon’s idea of shortening book delivery time is meant to encourage more book sales. According to the CNBC report, Amazon told booksellers that customers are more likely to buy products that list faster delivery times.

As competition in the retail market heats up, players like Amazon, Walmart (WMT), Target (TGT), and Best Buy (BBY) are using tactics such as faster delivery to woo customers. Amazon’s primary competitor in the book retailing business is Barnes & Noble (BKS).

As shown in the chart above, Amazon’s retail products sales increased 17% year-over-year to $23.8 billion in 2Q17. Overall sales in the quarter rose 25% to ~$38 billion.

New fulfillment schedule

Amazon gave its booksellers a few weeks to comply with the new fulfillment schedule requirement. Booksellers were given until August 30, 2017, to adapt to the faster delivery schedule. Amazon’s book delivery time changes also affected distributors of other physical media products such as CDs and DVDs.

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