Amazon Will Spend $800M to Bring Free One-Day Shipping to Prime

At the company’s quarterly earnings call, CFO Brian Olsavsky disclosed that Amazon is working to shorten its promised two-day shipping on Amazon Prime to one day. It’s going to cost the company a lot of money, however.

Olsavsky said it would cost about $800 million, which will likely eat into Amazon’s bottom line in the coming quarters.

“We’re trying to take advantage of the fulfillment capacity and transportation capacity . . . that we have,” the CFO said. Amazon’s push for faster delivery has put a lot of pressure on other retailers to speed up their ecommerce order fulfillment.

As for a timeline, Amazon wouldn’t give too many specifics. “We expect to make steady programs quickly and through the year,” Olsavky said, but wouldn’t say whether it would be fully rolled out by the holidays.

Read the full article here.

Offer 1-day and 2-day shipping at ground rates or less.

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