Amazon's new Prime number
Summaries for this episode
Amazon is planning to spend $800 million dollars in 2019, but on what?
Amazon is planning to transition their 2-day Prime shipping to a 1-day shipping program and is spending a significant amount of money on this investment.
Why is Amazon switching Prime to one-day shipping?
Amazon Prime is now 14 years old. Free 2-days shipping has been their advantage for most of this time, but many retailers are catching up. Target and Walmart now have a version of two day shipping, as well as a network of stores which could be turned into local fulfillment centers. Amazon needs to set a new standard, and one-day shipping seems to be it.
How much does Amazon spend to deliver their services?
In the first quarter of 2019, Amazon spent 7.3 billion on shipping costs alone.