Retailers’ Nightmare: Amazon Gearing Up for One-Day Shipping

Tuesday, April 30, 2019

GoLocalPDX Business Team

If you are a beleaguered retailer in America, the news from Amazon is more than depressing.

The online giant has announced that it will be rolling out one-day shipping for its Prime members.

The Seattle-based online retail retailer wants to change how we think about shopping once again.

To perfect the delivery project, Amazon will spend over $800 million to build out the infrastructure to support the faster delivery system.

“Setting free, one-day shipping as the standard for Prime could electrify the subscription service at a time when it's showing signs of saturation in the US. Shoppers see one-day shipping as a big distinguishing factor,” reports Business Insider.

When asked to imagine that two retailers offered a product at the same price, a resounding 80% of respondents said that one-day shipping would get them to choose one over the other, according to Business Insider Intelligence's 2018 Amazon Commerce Competitive Edge survey.

Respondents to the survey were primarily male (77%) Millennials (27%), Gen Xers (38%), and baby boomers (35%) with household incomes above $100,000 (68%), making them a good indicator of whether the new offering will appeal to key demographics, the survey found.

According to the company, the availability in specific areas and will have limitations on certain items that can be shipped.

Now, the company will attempt to spread the feature everywhere. Amazon, via earnings call Amazon would gain a big advantage over its rivals with the new service's debut.

Currently, companies like Walmart are matching Amazon's two-day shipping feature.

It is not yet known when Amazon will be able to completely roll out the service.