Amazon.com Inc plans to deliver packages to members of its loyalty club Prime in...
- Amazon.com Inc plans to deliver packages to members of its loyalty club Prime in just one day, instead of two days, part of a spending ramp-up that may curb near-term profits and will up the ante for retail rivals such as Walmart Inc.
“There’s a lot of error bars around this program, especially from the cost side,” Amazon’s Chief Financial Officer Brian Olsavsky told analysts on a conference call. “We again, trying to take advantage of the fulfillment capacity and transportation capacity, especially with third-party partners, that we have.”
She estimated that roughly 20 percent to 25 percent of Amazon’s shipping is currently within one day, noting that speedy service was easy in large U.S. metro areas where it already had built out its delivery network. However, costs can be prohibitive elsewhere.Shifts in the nature of Amazon’s business have afforded the company windfalls that it now can apply toward its ambitious delivery program.
The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts’ average estimate of $62.4 billion, according to Refinitiv data.
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