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When you collect as much data as Amazon, you can start attributing incremental worker time spent picking/carrying down to the SKU level. This means that cost of
by yomly 7y ago
When you collect as much data as Amazon, you can start attributing incremental worker time spent picking/carrying down to the SKU level. This means that cost of worker time is less for things like books (a picker can carry many and move quickly) while a 60" TV might require two pickers moving slowly.
Better attribution of cost means more margin to play with and cost savings that can be pushed onto customers in a fairer sense - especially if your pricing is automated.
Interestingly Kiva may then selectively reduce the costs associated with bulky goods as they're probably better at moving big stuff and travel faster/shorter.