Amazon is spending $800 million to make free one-day shipping standard for Prime

More than a decade ago, Amazon launched its Prime membership service with the promise of free two-day shipping. The unique offer helped attract millions of s...

Posted: Apr 26, 2019 8:52 AM

More than a decade ago, Amazon launched its Prime membership service with the promise of free two-day shipping. The unique offer helped attract millions of subscribers, shifted consumer expectations for shopping convenience and forced other large retailers to try to catch up.

Now, Amazon is spending big to cut that shipping window in half.

Amazon announced Thursday that it plans to invest $800 million in the second quarter of 2019 toward making one-day shipping the standard offering of Prime.

"Our goal is to evolve the two-day free shipping program into the one-day free shipping program, and we're making strides on that," Brian Olsavsky, Amazon's CFO, said on a conference call with analysts Thursday after the company reported record quarterly earnings. "We feel like we are doing something very important for the customer."

Olsavsky didn't specify when this option would be standard for all Prime customers, but he said Amazon expects to "make steady progress quickly and through the year."

Almost exactly a year ago, Amazon raised the price of Prime memberships in the United States from $99 to $119 per year. While the membership includes benefits such as access to original TV shows and music streaming, the core selling point has always been complimentary expedited shipping.

CEO Jeff Bezos has said that he wants Prime to be such a good deal that people would be "irresponsible not to be a member." Amazon now has more than 100 million subscribers who pay for the service.

By building out the logistics capacity to support one-day shipping, Amazon may not only be able to justify raising the cost of Prime again in the future, but also expand the types of products consumers are comfortable ordering online.

Amazon already offers one-day shipping for certain products and customers, but it does not come standard for all. The company also offers two-hour deliveries on certain items with its Prime Now same-day delivery service.

Lafayette
Cloudy
32° wxIcon
Hi: 33° Lo: 31°
Feels Like: 23°
Kokomo
Cloudy
31° wxIcon
Hi: 31° Lo: 30°
Feels Like: 21°
Rensselaer
Cloudy
30° wxIcon
Hi: 31° Lo: 29°
Feels Like: 23°
Lafayette
Cloudy
32° wxIcon
Hi: 31° Lo: 29°
Feels Like: 23°
Danville
Cloudy
31° wxIcon
Hi: 31° Lo: 30°
Feels Like: 21°
Frankfort
Cloudy
30° wxIcon
Hi: 31° Lo: 30°
Feels Like: 21°
Frankfort
Cloudy
30° wxIcon
Hi: 31° Lo: 30°
Feels Like: 21°
Monticello
Cloudy
30° wxIcon
Hi: 33° Lo: 31°
Feels Like: 23°
Monticello
Cloudy
30° wxIcon
Hi: 34° Lo: 31°
Feels Like: 23°
Logansport
Cloudy
30° wxIcon
Hi: 31° Lo: 30°
Feels Like: 21°
Snow showers......
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 587049

Reported Deaths: 9287
CountyCasesDeaths
Marion810691296
Lake44121665
Allen31797541
Hamilton28178303
St. Joseph26684369
Elkhart24057340
Vanderburgh18519213
Tippecanoe17305121
Johnson14398284
Porter14342159
Hendricks13793241
Madison10509212
Vigo10432171
Clark10151129
Monroe9029108
Delaware8782129
LaPorte8721153
Kosciusko784677
Howard7834137
Warrick636790
Hancock633297
Bartholomew624294
Floyd6098105
Wayne5903156
Grant5799109
Dubois541670
Boone531467
Morgan512388
Marshall492484
Henry491164
Cass469060
Noble458757
Dearborn454544
Jackson413145
Shelby401178
Lawrence379475
Clinton363639
Gibson355056
DeKalb336363
Montgomery333851
Harrison326042
Knox325439
Miami308243
Steuben304940
Adams294435
Whitley292325
Wabash291645
Ripley290845
Putnam282447
Huntington281257
Jasper280733
White265738
Daviess260772
Jefferson248538
Fayette241348
Decatur241282
Greene232460
Posey230026
Wells228547
LaGrange223461
Clay216432
Scott216437
Randolph207540
Jennings191335
Sullivan188531
Spencer179917
Fountain178625
Washington175018
Starke170741
Jay162021
Fulton158829
Owen157837
Carroll151315
Orange150533
Rush148118
Perry145327
Vermillion144333
Franklin142533
Parke12788
Tipton127332
Pike113125
Blackford107022
Pulaski94637
Newton89020
Brown85530
Benton84110
Crawford7479
Martin69213
Warren6537
Switzerland6175
Union6063
Ohio4647
Unassigned0374

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events