Amazon expects to improve the delivery times for customers who sign up for its Prime subscription program, cutting free deliveries to one day instead of two
Amazon.com Inc. expects to improve the delivery times for customers who sign up for its Prime subscription program, cutting free deliveries to one day instead of two, an executive said Thursday afternoon.
“We’re currently working on evolving our Prime free two-day shipping program to be a free one-day shipping program,” Olsavsky said, adding that Amazon expects to spend $800 million this quarter to make the change. Olsavsky said that one-day shipping expanded to more products in the first quarter, and that certain zip codes were receiving broader access to free one-day shipping. He did not say when the one-day shipping program would be available to all customers.
“We expect to make steady progress quickly and through the year,” Olsavsky later added in response to a follow-up question from a different analyst. “We’ll have more for you at the end of Q2 obviously.”In the first-quarter earnings call last year, Amazon announced that it would increase the Prime membership price to $119 a year, a 20% hike. It was the first time Amazon had increased the price in four years.
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