Amazon Will Spend $800 Million for One-Day Prime Delivery

April 26, 2019

Amazon is making One-Day delivery the new standard for Prime members. Announcing Thursday on their quarterly earnings call, “our goal is to evolve the two-day free shipping program to a one-day free shipping program,” CFO Brian Olsavsky stated.

This transition will require a significant investment, costing Amazon roughly $800 million with the risk of eating into their bottom line in the coming quarters. Amazons 20-plus years of establishing a robust fulfillment and logistics network have made this transition feasible, separating them from brick-and-mortar rivals like Walmart and Target.
Amazon didn’t offer too many specifics in regard to the timeline for One-Day Prime delivery, yet we are already seeing this as an option on many products. “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.

We’ll see the One-Day option being rolled out to more and more products daily as Amazon continues to raise the bar.

[Photo: Amazon]

Teddy O’Reilly