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Tuesday, September 27, 2022

Amazon to Spend $800 million to Provide One Day Delivery

 

In an effort to revive its main eCommerce franchise and fend off greater competition, Amazon.com is planning to spend $800 million to reduce delivery times for top customers to one-day.

Analysts at D.A. Davidson wrote in a note to investors, “To the extent it is able to fulfill this promise or, at least, the perception it is able to do, it will place a lot of pressure on the competition, most of which is still trying to ramp its two-day efforts.”

Amazon CFO, Brian Olsavsky said faster delivery times will increase the number and types of products that customers are willing to buy from Amazon.

Olsavsky, said, “We really think it’s going to be groundbreaking for Prime customers. We have the capability because we’ve been at this for more than 20 years.”

Although Olsavsky didn’t set a timeline for the rollout, he said, “We expect to make steady progress quickly and through the year.”