Amazon's Shipping Overhaul

Amazon.com, Inc. AMZN has been working on ways to improve its shipping services in order to better satisfy the growing demand for faster, cheaper and more efficient deliveries.

As the popularity of e-commerce grows, shipping options have become an important way for retailers to set themselves apart from the competition. Recently, Amazon has been testing several new shipping models in hopes of doing just that.

Free Shipping

Earlier this month, the company announced that customers could order small, low-cost items and have them shipped for free. Any purchases under $10 that weighs less than 8 ounces will no longer carry a shipping charge for both Prime and non-Prime customers. The offering is meant to entice shoppers who might otherwise buy smaller items online through Wal-Mart Stores, Inc. WMT or Target Corporation TGT to avoid shipping costs.

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Advertising

Amazon has also begun experimenting with selling ad space on its shipping boxes in an effort to cut down on logistical costs. At the beginning of June, Amazon inked a deal with Comcast Corporation CMCSA to display Universal Pictures and Illumination Entertainment's "Minions" to promote the film's July 10 release. It remains to be seen whether or not the deal will push Amazon to continue seeking out advertising sales in order to offset shipping costs.

Crowdsourced Deliveries

This week, the Wall Street Journal reported that Amazon was testing a new app called "On My Way," which would allow customers to pick up their own packages at designated locations and even choose to deliver other people's packages to earn a few bucks. Customers who decide to deliver others' packages ‘on their way home' would be eligible for discounts on their Amazon bills.