Amazon announced a pilot for a one‑hour in‑store pickup service that will begin in at least one metropolitan area in the first quarter of 2026. The service is designed to let customers place an order online and collect it from a physical Amazon store within an hour, blending the company’s e‑commerce platform with its growing network of physical retail locations.
The launch follows Amazon’s recent earnings, where net sales rose 10% to $155.7 billion in Q1 2025, driven by strong demand in its North America retail segment and a 17% year‑over‑year increase in AWS revenue to $29.3 billion. The company’s CEO, Andy Jassy, highlighted the pilot as part of a broader strategy to accelerate same‑day delivery and capture foot traffic that can be monetized through pickup fees and in‑store sales.
The one‑hour pickup service is expected to complement Amazon’s existing rapid‑delivery offerings such as Amazon Now and same‑day grocery delivery. By leveraging its physical stores, Amazon can reduce last‑mile costs, improve inventory visibility, and offer a convenient alternative for customers who prefer immediate access to their purchases.
Analysts view the pilot as a test of Amazon’s “quick‑commerce” model, which competes with Walmart’s in‑store pickup and emerging rapid‑delivery startups. A successful rollout could give Amazon a competitive edge in the fast‑commerce market and open new revenue streams from in‑store sales and pickup fees.
The announcement comes at a time when Amazon’s stock is trading near a 12‑month high, and the company’s guidance for 2025 remains upbeat, with revenue expected to grow 10% year‑over‑year. The pilot’s performance will be closely watched as a barometer of Amazon’s ability to scale its physical‑retail logistics and drive incremental revenue.
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