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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Lizzie Tudor who wrote (86976)12/10/1999 11:55:00 AM
From: Lizzie Tudor  Read Replies (1) | Respond to of 164684
 
I hate to admit this but Amazon must have somebody as good as me doing their technical logistics implementation.

I recently ordered something that for availability reasons is coming in 3 parts. They have 3 buckets for standard shipping... UPS (best case), USPS priortity mail, and standard mail. They need to get the goods to you as quickly as possible to recognize the revenue, it looks like they use priority mail on these broken up shipments, which costs them about 50% less than UPS, and if your order goes to 3 parts you eventually fall in the 1st class mail bin for books and cds (not electronics, those all go UPS I think - too big).

At one place I worked we did an optimization study and this was the approach we came up with. The consumer has a high level of satisfaction when you ship piecemeal, but you have to drop the costs.