Amazon revolutionized online shopping and quickly became one of the most ubiquitous and successful businesses in the world. This is in part owed to it always being on the forefront of reinvestment without pausing to actually earn money. To get ahead of its retail competitors, the company announced that it's working on bringing free one-day deliveries to its Prime members during its earnings calls on Thursday.
Currently, Amazon's annual subscription service qualifies you to free two-day shipping with most products, and only when you order items totaling more than $35 do you receive free one-day shipping. The upcoming faster delivery will come at no additional cost or conditions for paying Prime members, though.
The company says it's working hard with its logistics partners to achieve this faster delivery to an ever-growing number of places in the US. However, it states that it will take a significant amount of time until the service is fully deployed and that it will give us additional information about its efforts in this year's second quarter. What we know now is that the service will start rolling out in the US and will be available globally eventually.
The announcement comes shortly after Amazon's quarterly earnings calls, where it revealed that its retail income is slowing, which is not surprising since a business can only grow so big. To retain customers, the company has to give them more incentives to keep them loyal to its online shop. While Amazon could wish for even more growth in retail, that doesn't mean it's in any financial trouble – today most of the internet behemoth's income comes from its cloud storage business, Amazon Web Services (AWS).
- The Verge