Amazon has offered two-day shipping to Prime members for nearly a decade now.
But this year, the company’s expected to spend around $3.5 billion to expand same-day shipping, according to Youssef Squali, lead internet analyst at SunTrust Robinson Humphrey.
It’s spent nearly half that amount already — so much that its third-quarter profits were down 27% from the same time a year ago.
Why the emphasis on shipping? Because Amazon’s defining offer of 2-day shipping isn’t so defining anymore. Walmart, Target and drugstores have caught up. So Amazon is upping the ante, moving to same-day shipping.
It’s an expensive move that it hopes its competitors won’t be able to match.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?