Amazon Prime To Transition Shipping Times Over to One Day Shipping—What Will The Cost Mean To Prime Holders
In a recent statement released by Amazon, it would seem that in the not so distant future that standard delivery time on your Amazon orders will take one day, not the current two days.
Brian Olsavsky, Amazon chief financial officer, stated in that: “We’re currently working on evolving our Prim free day shipping program to a free one-day shipping program.”
Olsavsky gave some insight into how Amazon plans to achieve such a lofty goal. It would seem the company is planning on spending upwards of $800 million in the second quarter of this year, that is earmarked for the building out of the company’s infrastructure. This will, in turn, make the goal of one-day delivery quotes possible. The company already offers one day, same day and even one-hour shipping, but only in select zip codes, and only on specific products.
However, the company has been expanding the zip codes, over the last months, as well as the items that will be eligible for the one day shipping times. Olsavsky stated: “We’re able to do this because we spent 20 plus years expanding our fulfillment and logistics network.” He is also quick to say that the investment is a rather large one and that the company admittedly still has a lot of work to be done.
There has been no indication as to the exact date that the company will indeed transition to the one-day delivery. However, we do know that the current goal is to bring the delivery rate across the globe, starting first in North America. The expectation is to make steady and rapid progress throughout the current year.
Last year saw a price hike in Amazon Prime’s cost, but on Thursday it was said that the Amazon Prime sign-ups for 2018 were higher than any other year. By moving to a one-day delivery offer, the company can more than assuredly see an even more substantial increase in sign-ups for the Prime service. It will indeed be interesting to see if the service will hold true, and just how much cost will be passed on to the Prime subscribers. To think there will be no rate hike is somewhat unrealistic, but that is to be seen. Either way, if the one-day shipping can be implemented, Amazon will be riding high once again as the top dog of internet retail shopping.
So, what’s the verdict—you decide.
If Amazon does implement the one-day delivery as planned, will they also need to hike the price of Amazon Prime subscriptions?