Amazon AMZN, +2.54% will soon begin offering free one-day shipping to all consumers who subscribe to the Prime membership program, chief financial officer Brian Olsavsky told reporters and analysts during the company’s quarterly earnings conference call.
Over the past year, customers have complained that their packages were not arriving in two days as Amazon Prime promised. Cutting the delivery time in half won’t be easy. Over the past year, customers have complained that their packages were not arriving in two days as Amazon Prime promised, said Sara Skirboll, shopping and trends expert at deals-website RetailMeNot.
One-day shipping will be hard to guarantee The move to one-day shipping could be risky on Amazon’s part — especially if it doesn’t meet or exceed consumer expectations. “As a consumer, I can say anecdotally one-day shipping is very unreliable,” said Yowana Wamala, a research analyst with personal-finance website Value Penguin TREE, +5.78%
‘If they moved to same-day, that would likely have a much greater impact on consumers.’ —Michael Levin, partner and co-founder of Consumer Intelligence Research Partners Additionally, Amazon relies on a wide range of third-parties to actually carry out the shipping and these companies will need to be on board with the change, Wamala said.
Comparatively, Amazon Prime has a $119 annual fee — meaning that for less than $10 per month with an annual membership, consumers will have access to unlimited free one-day shipping.
Source: News Formal (newsformal.com)
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