Amazon Prime two-day shipping will go down to one day

Apr 27, 2019, 00:18
Amazon Prime two-day shipping will go down to one day

Amazon didn't say when the change to its Prime membership will happen, but says it has already been growing its selection of items eligible for one-day deliveries in the past month.

According to NBC, Olsavsky said the new Prime one-day shipping program would be free and expanded to more products and markets, just like the current two-day shipping offer.

Olsavsky did point out that Amazon has offered Prime members one-day shipping on select items for years.

"We'll be building most of this capacity through the year, in 2019", he later added.

Meanwhile, Amazon North America had $35.8 billion in Q1 sales, with a 17 percent year-over-year growth rate, and an operating income of $2.3 billion.

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Amazon revolutionized online shopping and quickly became one of the most ubiquitous and successful businesses in the world. "It is clear that Amazon is now in a different era - one characterised by more modest gains".

Amazon CFO Brian Olsavsky raised the topic of AWS without being prompted by an investor late in Thursday's earnings call to share his thoughts on the industry's leading cloud provider's improved margins and some notable customer wins.

The capacity to pull off one-day shipping consistently won't come cheap: Olsavsky noted that the company's guidance for the second quarter includes "approximately $800 million of incremental spend related to this investment".

"Amazon delivered slower growth in all key segments - AWS, advertising and e-commerce - but margins skyrocketed, seemingly driven by less aggressive investment", said Atlantic Equities analyst James Cordwell.

Amazon's overall $59.7 billion in quarterly revenue was up 19 percent from the first quarter of 2018. That helps Amazon consolidate shipping - and, if customers follow through - may hold down the cost of the new one-day pledge.

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First-quarter earnings were $7.09 a share, the Seattle-based company said in a statement. More than half of the company's merchandise is sold by third-party sellers.

And the company is delving into even less familiar terrain.

The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts' average estimate of $62.4 billion, according to Refinitiv data.

Chief Executive Officer Jeff Bezos for years pumped most of the cash generated from Amazon's operations back into new initiatives.

Losses narrowed considerably in Amazon's global unit.

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