Amazon Prime to be 1-day shipping instead of 2

Marco Green
April 26, 2019

The news came during an earnings call with Amazon chief financial officer Brian Olsavsky on Thursday, shortly after the tech giant announced its profits in the first quarter had doubled to a record $3.6 billion.

Free two-day shipping is one of the key benefits of the Prime subscription program, which also offers customers access to services like Prime Video, Prime Music, Prime Pantry and Prime Now.

"We're now working on evolving our Prime free two-day shipping program to be a free one-day shipping program", Olsavsky said.

Two-day unlimited shipping is likely Amazon's most popular perk for its Prime members, and it's about to get even better.

Inc. reported quarterly profit that exceeded analysts' estimates, demonstrating the company's focus on cloud-computing, advertising, and other high-margin businesses continues to pay off. The area is getting more competitive: Microsoft has also been growing its cloud business, and both Amazon and Microsoft are vying for a multibillion contract with the USA military.

In a report published this week, Consumer Intelligence Research Partners estimated that Amazon has 103 million USA -based Prime members and said membership growth has "flattened" year-over-year.

Amazon's fast-growing advertising business has also become big money maker, selling ads to companies that want their products to show up first when shoppers search on the site. Revenue gained 17 per cent from a year ago to US$59.7 billion - in line with the average estimate of analysts compiled by Bloomberg. Experts say the events are unlikely to pose much of a threat to Amazonâ™s business.

AWS revenue gained nearly 42 per cent from a year earlier to US$7.7 billion.

Shares of Seattle-based Amazon.com, which are up 27 per cent so far this year, were little changed in after-hours trading on Thursday from their closing price of US$1902.25.

Amazon Web Services revenue surged 41.4 per cent to US$7.70 billion, but missed the estimate of US$7.72 billion.

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.

Other reports by Click Lancashire

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