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Amazon says it can ship items before customers order

William M. Welch
Sunday, 19 Jan 2014 | 9:13 AM ET
Amazon moves into mind reading
Tuesday, 21 Jan 2014 | 11:07 AM ET
Amazon is getting a new patent for what it calls "anticipatory shipping," a system that predicts shoppers future purchases based on previous buys. CNBC's Jon Fortt reports.

Online retail giant Amazon says it knows its customers so well it can start shipping even before orders are placed.

The Seattle-based company, which late last year said it wants to use drones to speed package delivery, gained a patent last month for what it calls "anticipatory shipping,'' the Wall Street Journal reports.

Amazon, the Journal reported, says it may box and ship products that it expects customers in a specific area will want, based on previous orders and other factors it gleans from its customers' shopping patterns, even before they place an online order.

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Among those other factors: previous orders, product searches, wish lists, shopping cart contents, returns and other online shopping practices.

Amazon has worked to cut delivery times as a way of encouraging more orders and satisfying customers, such as by expanding its warehouse network and making some overnight and even same-day deliveries.

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Amazon didn't estimate how much delivery time it expects to save, or whether it has already put its new system to work, the Journal reported.

"It appears Amazon is taking advantage of their copious data," Sucharita Mulpuru, a Forrester Research analyst, told the Journal. "Based on all the things they know about their customers they could predict demand based on a variety of factors."

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To minimize the cost of unwanted returns, Amazon said it might consider giving customers discounts or even make the delivered item a gift.

"Delivering the package to the given customer as a promotional gift may be used to build goodwill," the patent said.

—By USAToday's William M. Welch.

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.