Your Amazon Prime Delivery Is About to Speed Up

Ann Santiago
April 27, 2019

"We're now working on evolving our Prime free two-day shipping program to be a free one-day shipping program", Amazon CFO Brian Olsavsky said in the company's quarterly investor relations call. Already, the company's Amazon Prime program has been offering one-day, same-day, and two-hour shipping times, but only in certain zip codes and for a limited number of products.

CNET reported that Amazon finance chief Brian Olsavsky announced the move during an earnings call on Thursday.

Amazon says it will start to offer one-day shipping to its U.S. Prime members. Its cloud computing business, which powers the video-streaming service Netflix, digital scrapbooking site Pinterest and many other companies, saw its revenue soar 41% from a year ago.

It did not say when delivery times would be cut but said it expects to make "steady progress" this year.

Amazon revolutionized online shopping and quickly became one of the most ubiquitous and successful businesses in the world. The company, which had been spending heavily in a bid to grab market share in India's emerging online retail sector, was dealt a setback by regulations that limit the ability of foreign marketplace operators to take stakes in local merchants or ink exclusive deals with local sellers.

Despite all these additional delivery capabilities, Olsavsky said Thursday that Amazon will need to continue relying on its delivery partners going forward - a nod to years-long concerns that Amazon would eventually compete directly with UPS and FedEx as a delivery provider.


Amazon.com brought in a record US$3.6 billion ($5.4b) in profit during the first quarter of 2019, more than doubling its profit from a year ago and continuing its streak of record-breaking earnings.

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"Amazon has kicked off its fiscal year with a solid set of results which signal its continued market share advance into both the product and services sectors", said Neil Saunders, managing director, GlobalData Retail. Total revenue increased 17%, the first year-over-year gain of less than 20% in a quarter since early 2015. Amazon Web Services accounted for just 13 percent of Amazon's Q1 revenues, but the cloud business pulled in almost half of the company's operating income.

More than half of the company's merchandise is sold by third-party sellers.

The company said it will spend $800 million in the current quarter to reduce delivery times. Analysts expected revenue of $62.53 billion.

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