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Amazon Makes One-Day Shipping Standard for Prime Members
The race to radically speed up delivery times for online purchases took another giant step with Amazon announcing it would offer one-day shipping for Prime members rather than two. The change was announced on an Amazon earnings call.
Chief Financial Officer Brian Olsavsky said, “We’re currently working on evolving our Prime free two-day shipping program to be a free one-day shipping program.” Olsavsky noted the company plans to spend $800 million this quarter, as well as additional investment throughout the year to build out the required infrastructure
The “game-changing” shift by the Seattle-based e-commerce giant may help it remain a step ahead of the competition, but it also is causing angst across the retail sector. Retailers must figure out how to keep up with a growing club of members who pay $119 a year for Prime, as well as meet the expectations of all consumers who increasingly demand quicker deliveries, too.
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