Amazon rocked the boat in 2005 when the company offered two-day shipping. Now, other retailers have caught up and can match that same luxury. The result? Amazon is raising the bar again soon by offering one-day shipping as the standard for Prime members.
Currently, the company does free one-day shipping and delivery for millions of products, and over 100 million items have free two-day shipping and delivery.
Amazon Prime members are soon going to be able to expect one-day shipping as the new standard. Here’s what Prime one-day shipping could mean for both Amazon and you as the customer:
The company plans to spend $800 million to improve warehouses and its delivery infrastructure to support free one-day shipping for even more items. Amazon shoppers in Europe and Japan already enjoy this service, but since the US is Amazon’s largest market, it’s time the company expanded the one-day shipping service.
Reducing the standard shipping speed by a whole day will put pressure on other major retailers to also step up their shipping and delivery game. (Should we mention that Amazon does already have some items available for same-day (two-hour) shipping?)
Amazon has not disclosed when the one-day shipping will rollout globally. However, it will take effect in North America first.
Also, on a recent earnings call, Amazon CFO, Brian Olsavsky, said that this investment will cut into the Amazon’s profit margins.