Amazon is evolving its two-day free delivery for Prime members down to just a single day.
“We’re able to do this because we’ve spent 20-plus years expanding our fulfillment and logistics network, but this is still a big investment and a lot of work to do ahead of us,” said Brian T. Olsavsky, senior VP and chief financial officer, in its first-quarter earnings call. “For Q2 guidance, we’ve included approximately $800 million of incremental spend related to this investment.”
Olsavsky didn’t specify when the company hopes to have this rolled out to the majority of Prime subscribers or how many SKUs would be eligible, but said the company would have more details in the second quarter.
Likewise, specifics about whether it will ramp up its Amazon-owned shipping infrastructure weren’t provided, other than Olsavsky noting that “we’re going to be using all of the available levers that we have right now, both AMZL and also … all third-party carriers, and we’ll just see how it develops going forward, but we’re going to need definitely the continued support of our external transportation partners.”
Amazon is estimated to have approximately 103 million Prime subscribers, according to a recent study by Consumer Intelligence Research Partners.