Amazon Prime to Transition to One-Day Shipping
As if Amazon Prime wasn’t fast enough, the company announced plans to cut down its two-day shipping time to just one day through a new $800 million investment. Although these speedy deliveries have already begun in some areas, the goal is to make the one-day shipping a standard for all eligible Prime customers. Amazon CFO, Brian Olsavsky revealed the news on a conference call with analysts on Thursday, saying, "this is all about the core free two-day offer morphing into a free one-day offer.”
In addition to its two-day Prime shipping, Amazon also has several other ways to get packages out the door rather quickly. Many areas offer same-day deliveries, and a few even have one to two hour options. But many of Amazon’s peers (i.e. Target and Walmart) have caught up to the once superior two-day shipping standard, so it was time for Amazon to differentiate itself once again.
"I’m not surprised by it — they’re already delivering to the consumer in one day and faster — so I think that gives them confidence," he told Retail Dive in an interview," Jon Weber of L.E.K Consulting told Retail Dive. “There was a time when free two-day shipping was a massive difference — that superiority historically, that gap from the competition, removes choice in the mind of the consumer. Well if that’s narrowing — that’s a potential risk to Amazon."