The company confirmed on Tuesday that the new delivery options are now active in markets including Los Angeles and Chicago.

The Amazon 1-hour delivery service already covers more than 90,000 products, ranging from everyday items to toys and household goods. Meanwhile, the 3-hour option has rolled out to over 2,000 cities and towns.

Fast delivery has become essential to how Amazon wants customers to shop, and the company is trying to get people to buy more items and return more often.

To support this, Amazon is not building an entirely new system. Instead, it is using its existing same-day delivery centres.

Inside those facilities, workers now handle fast orders at dedicated stations. Packages carry yellow labels so they can be picked and moved quickly and there are signs to guide delivery partners through the process.

Amazon is also testing even faster delivery through a service called “Amazon Now”. That pilot runs in cities such as Seattle, Philadelphia, and parts of London. It focuses on groceries and daily essentials, with delivery promised in 30 minutes or less.

“We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members,” Amazon Senior Vice President of Worldwide Operations Udit Madan said in a press release.

Customers pay extra for the speed as Prime members are charged $9.99 for 1-hour delivery and $4.99 for 3-hour service. Those without Prime pay $19.99 and $14.99 respectively.

This enhances Amazon’s competition with Walmart, which already reaches about 95% of U.S. households with next-day or faster delivery. Walmart’s strength in groceries gives it an edge, and Amazon’s recent changes show it wants to close that gap.

With the holiday season here already, both global and Nigerian eCommerce platforms are already seeing high demand. This period brings high-stakes pressure to retailers as consumers rely more on online stores for shopping.

In the US alone, online sales reached $288.8 billion in the third quarter of 2024, a 7.46% increase year-over-year (YoY) from the third quarter of 2023. 

Meanwhile, Nigeria’s eCommerce market, valued at $8.53 billion in 2024, is projected to reach $14.92 billion by 2029, with a compound annual growth rate (CAGR) of 11.82% during the forecast period.

This surge reiterates how much eCommerce is becoming indispensable, particularly during peak shopping seasons. 

However, with the holiday rush, it’s a big wonder if technology can keep up with the high demands of holiday shoppers, or are cracks starting to show under the weight of consumer expectations? Millions of shoppers converge on online stores, pushing the system to its limits. Any glitch, any hiccup, can have catastrophic consequences.

The Pressure on eCommerce Platforms

Over 40% of annual retail sales occur between Thanksgiving and Christmas globally and Nigerian platforms like Jumia have seen commendable growth. Jumia recently reported an 18% year-on-year increase in orders during the 2024 holiday season which is just starting. Imagine the percentage increase by year-end!

But while demand surges, so too do consumer expectations. In both the US and Nigeria, shoppers are now accustomed to fast deliveries, often within 24 to 48 hours, and seamless checkout. 

Research reveals that 70% of online shoppers abandon their carts due to poor user experience, while in Nigeria, 45% of consumers would switch platforms if delivery times exceed expectations.

For retailers, the stakes are high—failure to meet these expectations can result in lost sales, customer trust, and irreparable damage to a brand’s reputation. 

The need for operational efficiency has never been more important, as tech infrastructure limitations, supply chain disruptions, and cybersecurity issues threaten to obstruct smooth operations during the busy holiday season.

Challenges in Meeting Holiday Demands

Tech Infrastructure Limitations: Server overloads, slow website speeds, and outages are common during peak shopping periods. Last year’s Black Friday saw lots of disruptions, with Amazon experiencing intermittent outages as servers were unable to handle traffic peaks. 

In Nigeria, platforms like Jumia have faced similar issues, with users reporting delays in page load times and failures in processing transactions. The holiday surge often exceeds bandwidth capacity, causing slowdowns and customer frustration. This is why scalable, efficient infrastructure is required.

Supply Chain Disruptions: The global supply chain problem, worsened by the pandemic and logistical challenges, has made it more difficult to meet the rising demand for products. 

In 2023, more than 60% of global supply chains faced delays, leading to out-of-stock situations for major retailers. 

Platforms like Konga had delays in shipments from overseas suppliers, affecting the timely availability of high-demand goods such as electronics and fashion. Local delivery systems in Nigeria are also under pressure, with shipping times increasing by 20% during the holiday season, according to a report by the Nigerian Shippers’ Council.

Cybersecurity: The holidays also bring risks of cyberattacks, including data breaches and fraud. Last year, more than 500 million online accounts were compromised globally during the holiday shopping season. In Nigeria, the rise of digital payment fraud has led to increased cybersecurity anxieties. 

During the holiday season, cybersecurity agencies, including Nigeria’s National Cyber Security Centre (NCSC), often issue warnings about an increase in fraudulent activities in eCommerce transactions. 

This period is particularly vulnerable to cyber threats due to the high volume of online transactions,  making individuals and companies more vigilant about the safety of online payment systems, and investing in more secure payment gateways.

AI and Personalisation Challenges: Personalisation technologies, including recommendation engines and dynamic pricing algorithms, are mostly unable to keep up with increased traffic. Reports reveal that nearly 40% of eCommerce websites experienced issues with AI algorithms during peak periods, causing pricing errors or incorrect recommendations. While recommendation engines of eCommerce platforms are improving, they struggle to scale effectively during the busiest shopping times.

Technology’s Role in Overcoming Challenges

Even with these challenges, technology is going beyond to ensure eCommerce platforms can meet the demands of holiday shoppers.

AI and Personalisation

AI, on the other hand, is being leveraged to enhance customer experiences. Personalised shopping through recommendation engines and targeted ads boosts satisfaction and drive sales. AI-driven chatbots are handling customer service inquiries efficiently, particularly during peak shopping times.

Automation in Warehousing and Logistics

Robotics and automation are enhancing warehouse operations, with AI-powered robots speeding up order fulfilment and automated sorting systems reducing processing time. Added to these, innovations such as drones and autonomous vehicles are being tested for last-mile delivery, improving delivery speed in urban areas.

Cloud Infrastructure for Scalability

To address server overloads and traffic surges, companies like Amazon and Nigerian platforms like Jumia are investing heavily in cloud infrastructure. Amazon’s AWS, for example, dynamically adjusts resources based on demand, while others have expanded their server capacity to manage increased traffic. Alibaba’s use of AI, robotics, and big data during Singles’ Day showcases how technology can handle massive spikes in transactions.

These improvements help to prevent slowdowns and outages that could lead to lost revenue.

AI-Driven Supply Chain Optimisation

AI-driven solutions are also aiding in inventory management and demand forecasting, helping platforms better predict customer demand and ensure stock availability. This has been a game-changer in reducing stockouts.

Platforms have implemented similar technologies, investing in AI for real-time inventory tracking and predictive analytics. During peak sales events like Black Friday, Jumia faced logistical challenges but responded by improving its partnerships with local couriers and enhancing its delivery tracking systems.

Cybersecurity Measures

The holiday season is notorious for cyberattacks, with the rise of digital payment fraud and data breaches. In Nigeria, over 35% of eCommerce transactions during the holiday period are flagged as potentially fraudulent. To tackle this, platforms are investing in more secure payment gateways and strengthening their cybersecurity protocols to safeguard customer data and maintain trust.

Advancements in Logistics Tech

Innovations like drone deliveries, automated warehouses, and real-time tracking are enhancing logistics capabilities. Globally, Walmart is using drones to expedite deliveries of small items, while companies like DHL and UPS are optimizing routes with AI-powered logistics platforms. In Nigeria, logistics startups like Max.ng are piloting drone deliveries in Lagos to handle last-mile delivery and reduce congestion in urban areas.

Enhanced Customer Experience Tools

AI-powered chatbots and the integration of AR/VR are enhancing the shopping experience. Companies like Shopify are using AI to offer personalised shopping experiences, while some other platforms are exploring virtual try-on technologies for fashion and beauty products. 

Companies have learnt from past holiday seasons when it comes to handling high demand. For instance, in 2022, Amazon’s infrastructure had some issues during Black Friday, but the company quickly scaled its cloud capacity and implemented predictive analytics to avoid similar issues in 2023. Similarly, Jumia has learned the importance of proactive logistics planning and clear customer communication.

Emerging Technologies and eCommerce

Emerging technologies like blockchain for secure transactions, quantum computing for better demand forecasting, and advancements in drone deliveries can further bolster eCommerce. 

In Nigeria, blockchain is being explored to improve transparency in supply chains, while some platforms are adopting eco-friendly delivery methods to reduce their carbon footprint.

These innovations can simplify processes, reduce fraud, and improve overall shopping for users. Quantum computing could boost demand forecasting and inventory management by processing large amounts of data more efficiently. 

Companies globally are experimenting with blockchain to improve transparency in supply chains, ensuring customers are informed about product sourcing and delivery times.

Reducing Carbon Footprint 

With growing consumer awareness of environmental issues, platforms are under pressure to reduce their carbon footprint. Companies like Amazon are investing in electric delivery vehicles to lower emissions, and some Nigerian platforms are working with eco-friendly delivery startups to offset carbon emissions during peak shopping periods. 

According to a report by the Nigerian Business Council, eCommerce platforms are considering environmental impact when selecting logistics partners.

The holiday shopping season is a hot one for retailers, eCommerce platforms, and technology providers. With demand surges, the question about eCommerce platforms and supporting technologies meeting these expectations, or the system causing some limitations during the holiday rush could be tied to efficiency in every process involved. 

What do you think—are eCommerce platforms ready for the holidays, or do you foresee some hiccups this season?

Recently, I had the task of sending prescription glasses in a case to Benin City. After considering all the available options, it became clear that taking it to a park and paying one thousand naira was the best way to get it delivered, on the same day. It was cost-effective, and timely and ensured that I met my goal. 

I spoke to a driver, he very reluctantly revealed that he made, on average, N12, 000.00 daily, from, “help me deliver this”. 

Imagine this:

One driver in one park makes an average of N12, 000.00 daily. Multiply this by the number of drivers in that one park, over 50 times the number of interstate transport parks across Lagos and then across the country. We’ll be talking billions of naira monthly boosting the informal sector (we should talk about this soon).

Now imagine the various types of commodities that are packaged and transported through this process. The potential is immense. The opportunity is boundless. 

I suspect that the park drivers may have effectively taken the market from formal courier service providers. So, while courier firms are battling with the federal government (through the regulator, NIPOST), the market is whittling away. This is the definition of disruption. 

At the core of distribution is transportation. As more and more people, especially young people, take their businesses online the need for an effective distribution system grows. Horses for courses. This is essential if goods must get to the hands of the final consumer. This is where the money will be made. 

The government talks about growing the digital economy, creating jobs and improving the ease of doing business. It must now back up the talk with real-life and real-time support for the distribution and logistics sector. It is a sector that holds tremendous opportunities for socioeconomic transformation. 

It’s not only individuals that need functional distribution systems. Multinationals, public corporations and in fact, everyone needs to deliver something somewhere at some time. 

The system that makes this work effectively cannot remain haphazard and disjointed. It cannot depend exclusively on “help me deliver this”. 

It needs the power of synergy and coordination. It requires structure and organisation. It must be nourished and harnessed. 

In today’s digital economy, distribution and logistics are crucial to ensuring that goods and services are delivered to customers quickly and efficiently. You will agree with me that the rise of e-commerce has fundamentally changed the way we buy and sell products, and this has led to a greater need for effective distribution and logistics systems.

At its core, the digital economy is all about speed and convenience. Consumers expect to be able to order products online and have them delivered to their doorstep within a matter of days, or even hours in some cases. This means that businesses must be able to move goods quickly and efficiently through the supply chain, from the point of manufacture to the end customer.

Distribution and logistics play a key role in making this happen. These systems are responsible for coordinating the movement of goods and ensuring that they arrive at their intended destination on time and in good condition. They are also responsible for managing inventory levels, tracking shipments, and handling returns and exchanges.

One example of the importance of distribution and logistics in the digital economy can be seen in the rise of same-day delivery services. With companies like Amazon and Walmart in America offering same-day delivery in many major cities, there is a growing need for distribution and logistics systems that can deliver products quickly and efficiently. Jiji, Jumia and Konga are pioneering similar initiatives across the African continent.

This requires a combination of advanced tracking and routing technology, as well as a network of distribution centres strategically located throughout the country.

Nigeria is a country with a large population and a growing economy. With a diverse range of industries, from agriculture to manufacturing to technology, there is a need for a robust and efficient distribution network to ensure that goods and services are delivered to customers in a timely and cost-effective manner. Nigeria can strengthen its distribution network through these simple steps: 

Improve Infrastructure: 

Nigeria’s road, rail, and port infrastructure are in dire need of improvement. Poor roads and largely outdated rail networks make it difficult for goods to be transported quickly and efficiently across the country. The government needs to invest in upgrading and modernizing its infrastructure to improve the movement of goods. 

Encourage Private Investment: 

The government should encourage private sector investment in logistics and distribution. This can be done through tax incentives, grants, and other forms of financial support to help businesses expand their distribution networks. 

Embrace Technology: 

Nigeria can also strengthen its distribution network by embracing technology. This includes the use of digital platforms to streamline operations and improve supply chain visibility. By using technology, businesses can track shipments, manage inventory, and optimize delivery routes, leading to the faster and more efficient delivery of goods. 

Develop Regional Distribution Centers: 

Nigeria has a large landmass, and it can be difficult to transport goods from one part of the country to another. Developing regional distribution centres can help to solve this problem. These centres can serve as hubs for goods coming in and out of different regions, making it easier to transport them across the country.

Improve Customs Processes: 

Nigeria’s customs processes can be lengthy and bureaucratic, leading to delays in the movement of goods. Simplifying and streamlining these processes can help to speed up the delivery of goods and reduce the cost of doing business.

Efforts must also be intensified to improve the nation’s security architecture. Security is important to ensure the safety of individuals involved in this process. 

Nigeria’s distribution network needs to be strengthened to support the country’s growing economy. Improving infrastructure, encouraging private investment, embracing technology, developing regional distribution centres, and improving customs processes are important elements to help kick-start this.

By taking these steps, Nigeria can build a more efficient and effective distribution network that supports economic growth and development. We can then begin to reap the benefits of the digital economy in tangible ways. 

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

But what if you don’t have to be tech-savvy? What if your employees can do their jobs without having to know how to code or become an expert in social media marketing? Sounds crazy right? Well, companies like Walmart are doing just that and they’re making good business decisions by doing so.

What if you could do business without tech?

There’s a lot of talk about tech these days, but what if you could do business without it? All you need is to be creative and strategic in your approach. Here are some tips:

• Do not rely on your team or client’s familiarity with technology; instead, get them involved in the process from beginning to end by asking them what they think will work best for them (and their needs). This way everyone knows where they stand and where they’re going!

Why do we need tech?

Tech is a tool, not the end goal.

Tech is a way to get things done.

Tech helps you improve productivity, efficiency and customer experience through innovation in your business processes. You can increase communication with customers by using technology like chatbots and mobile apps that allow employees to answer questions faster than ever before.

Which companies are doing this?

The companies that are doing this are:

• Tesla, who’ve been investing heavily in their own autonomous future
• Apple, who were pioneers of the mobile phone and tablet market, but took a step back before they could become truly revolutionary. Their latest product is a smartwatch which you can use to control your phone (and other devices).
• Amazon Echo, the voice-controlled personal assistant you can talk to through your home speakers or headphones. It’s not always clear what Amazon plans on doing with its AI products; they seem like they’re trying very hard not just do something groundbreaking with them but also avoid doing something boring that everyone else had already done first!

How No-Code AI Can Help Your Business in 2023

How to manage the transition from non-tech to tech

It’s time to plan for the inevitable changes in your business, employees and customers. There are two main reasons why this is important: it will help you avoid significant losses and reduce your risk of failure, and it will ensure that you have a solid foundation upon which new technology can be built.

To start planning for the inevitable changes in your business:

• Identify areas where there are no obvious technological solutions available but where there may still be room for improvement or innovation by using existing technology more effectively (e.g., marketing automation) or building something new based on existing technologies (e.g., virtual reality)
• Create an internal roadmap of all projects that need attention over time so everyone knows what they’re working on—and when! This way everyone has an idea about how long each project should take before completion.

Leveraging a little technology can make all the difference

You might be tempted to think that technology is the key to success, but it’s not. In fact, many companies are realizing that leveraging a little bit of tech can make all the difference in their business model.

Technology can be used for many things: improving customer experience, improving employee productivity and satisfaction with the company’s products or services, reducing costs and increasing revenue through sales processes (e-commerce), etc.

Conclusion

So why do we need tech? We need it to make our lives easier, more efficient and more productive. Nonetheless, it’s also reasonable for some companies to decide that they need less tech and still be able to function just fine as an organization or even as a business.

On Monday, the tech company continued its phenomenal share price growth, tripling in value in under four years, according to The Guardian report.

A pandemic-era surge in tech stocks has driven the major tech companies to new highs, pulling US stock markets with them.

Apple became the world’s first trillion dollar company in August 2018, passed $2tn in 2020 and hit its new high as trading began after the holidays and its shares passed $182.80 a piece before dipping lower to end the day valued at over $2.9tn.

Apple alone is now more valuable than the combined values of Boeing, Coca-Cola, Disney, Exxon-Mobil, McDonald’s, Netflix and Walmart. Its shares have risen 38% since the beginning of 2021, one of the largest gains on the Dow Jones industrial average stock market index.

The company released its last quarterly earnings in October and made a profit of $20.6bn over the previous three months despite suffering from Covid-related supply chain issues.

It is unlikely to remain the only $3tn company as analysts expect Microsoft will also hit the mark later this year.

Apple thinks ahead

In the other report, an anonymous tipster hinted that Apple has advised major U.S. carriers to prepare for the launch of eSIM -only smartphones by September 2022.

The tipster shared a seemingly legitimate document outlining the timeframe for this initiative, although the document does not specifically mention Apple or the iPhone.

As part of the transition, some U.S. carriers will allegedly start offering select iPhone 13 models without a nano-SIM card in the box in the second quarter of 2022.

iPhone 13 models sold at Apple Stores or on Apple.com already lack a nano-SIM card in the box, with users typically able to activate a cellular plan via eSIM by turning on the iPhone, connecting to a Wi-Fi network, and following the on-screen instructions.

Given the alleged September 2022 deadline, it is possible that Apple might remove the physical SIM card slot starting with some iPhone 14 models, rather than some iPhone 15 models as originally rumored, but nothing is definitive at this point.