SEATTLE: Amazon.com, which reported a 20 percent increase in net sales to US$23.18 billion for the second quarter of 2015, has expanded its 'Prime Now' members-only delivery service to Birmingham, UK following a London launch in June this year.
The company's operating income swung from a loss of US$15 million last year to a massive US$464 million gain in Q2 and resulted in a net profit of US$92 million compared to a loss of US$124 million year-on-year.
Prime Now offers one-hour delivery on thousands of products from daily essentials to consumer items and sports goods via a mobile app. The company says its fastest London delivery to date is a Netgear Wi-Fi Range Extender that took just 12 minutes from order capture.
The Prime service is backed by Amazon's UK network of eight fulfillment centres that cover 20 million sq.ft. and employ 7,000 people. The company says its 'Amazon Logistics' program has created more than 2,000 new jobs for local and regional delivery companies.
According to David Jinks, an executive at e-commerce delivery company ParcelHero: 'For Amazon's long-suffering investors, it has always been the promise of 'jam tomorrow' that has kept them holding on, through the considerable expense of building a radical new supply chain. Now that Amazon's logistics arm is finally in place, its shareholders can finally enjoy their jam today."
Commenting on Amazon's Q2 profit Jinks added: '"The secret behind these surprise profits is that Amazon continually invested significant sums in order to deliver its new logistics arm. With Amazon Logistics in place it can service its Prime members, a hugely loyal and lucrative market. It can now deliver Prime Same Day, Same Hour and even Fresh services in many areas of the US and also - thanks to its warehouse investment - in London as well; bypassing traditional delivery companies such as FedEx, UPS and the UK's Royal Mail."