Will Amazon Offer FREE One-Day Shipping To Over 100 Million Subscribers?
- Published May 01, 2019
- Consumer Goods & Trends
As it announced a very impressive earnings report for the first quarter, Amazon (AMZN) also revealed that it is working on offering Prime members free one-day shipping on many items instead of the two-day shipping that it currently touts. As of Amazon’s last update in the first quarter of 2018, Prime claimed over 100 million subscribers. Free two-day shipping has been the biggest draw for Amazon’s paid subscription service, although it does currently offer one-day shipping and even same day or two-hour delivery for some zip codes. According to the company’s Chief Financial Officer, Brian Olsavsky, the goal is to expand that one-day shipping to encompass the entire country throughout the next year. The price tag on such an ambitious effort isn’t cheap. Olsavsky warned investors that profits will likely see a bit of a dip next quarter as the company works on the implementation of their plan. In the second quarter, the predicted expenses will be $800 million. When exactly the one-day shipping mark for all customers will be met isn’t clear. No date has been set, and Olsavsky explained that “We expect to make steady progress quickly and through the year. We’ll have more for you at the end of Q2 obviously.” Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. Stay Informed! Stay Competitive! Sign Up to receive FREE email updates here!