Published: Sun, April 28, 2019
Money | By Ethel Goodwin

Amazon is Bringing One-Day Shipping to Prime Members

Amazon is Bringing One-Day Shipping to Prime Members

If you're an Amazon Prime subscriber, you've undoubtedly enjoyed the benefits of free two-day shipping, and it's most likely the reason you even subscribe.

"We're now working on evolving our Prime free two-day shipping program to be a free one-day shipping program", Amazon's chief financial officer Brian Olsavsky said in a Thursday earnings call. The two companies over the next few months planning to launch an official YouTube app on Amazon Fire TV devices and Fire TV Edition smart TVs, as well as the Prime Video app for streaming to Chromecast and Chromecast built-in devices.

The three months to March 31 2019 also delivered operating income of US$4.4 billion ($6.27 billion), compared to US$1.9 billion ($2.7 billion) the year prior. For years, Amazon has made expensive bets on new technology and programs, like its $13.7 billion purchase of Whole Foods Market in 2017 to become a player in the USA grocery business.

The one-day shipping change comes as the world's biggest e-commerce company has been facing considerably more competition from rival retailers, including Walmart and Target, who are finally starting to catch up to Amazon's efforts to offer quick shipping for online purchases.

"We feel like we're doig something very important for the customer and we're trying to take advantage of the fulfillment capacity and the transportation capacity we have".

Amazon's digital advertising business, meanwhile, grew about 34 per cent to roughly US$2.7b, compared to 95 per cent growth in the first quarter of previous year.

There are signs that the company's growth is slowing, even in its cloud and advertising businesses. "We expect to make steady progress quickly and through the year", Olsavsky said.

Still, expenses related to the new Prime perk, and the suggestion of more to come in a profit forecast that fell short of estimates, contributed a dour note in Amazon's otherwise upbeat earnings.

AWS delivered half of Amazon's overall income of $4.4 billion-which surged beyond the $1.9 billion realized in the same period a year earlier. Amazon said the category grew 34 percent in the first quarter to bring in $2.7 billion in net sales. But the company will continue to face more challenges as it grows larger.

Chief Executive Officer Jeff Bezos for years pumped most of the cash generated from Amazon's operations back into new initiatives.

Advertising is still a bright spot for Amazon, and a core focus for the company as it builds the marketing technology infrastructure so brands can sell their goods on its platform.

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