Amazon's new Prime number
Amazon's shift to one-day shipping as the core benefit of its Prime membership program promises to significantly alter Amazon’s financial picture and accelerate the pace of global online commerce. On this special episode of the GeekWire Podcast, reporter Nat Levy joins us to look at the implications of this move for Amazon, its customers, competitors, investors and the shipping + logistics industry.
In this episode
Smash Notes summary 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.