Amazon plans to make the premium shipping a day by default



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A drone with an Amazon parcel floats in front of the Amazon logistics center in Leipzig, Germany, on October 28, 2014. Amazon has not said whether the drones will feed this default speed acceleration per day for the payment of deliveries. 39; Amazon Prime subscribers.
Enlarge / A drone with an Amazon parcel floats in front of the Amazon logistics center in Leipzig, Germany, on October 28, 2014. Amazon has not said whether the drones will feed this default speed acceleration per day for the payment of deliveries. 39; Amazon Prime subscribers.

The latest Amazon earnings conference call revealed a major shift for Amazon Prime's paid subscription service: an "evolution" to a nationwide default one-day delivery. .

"We are currently working on making our free two day Prime Shipping program a one – day free shipping program," said Amazon 's CFO Brian Olsavsky at his quarterly investor relations call. The news came in response to questions about forecasting additional spending and revenue acceleration in parts of the company's second-quarter financial forecast, which Olsavsky said has largely revolved around this effort to to speed up the default shipping speeds of Amazon Prime.

Amazon has not yet officially announced this initiative through its information or public relations channels, and Olsavsky has not provided an estimate of exactly when it would become a national default for the subscription service. .

Olsavsky reminded listeners that Amazon has long been offering options such as same-day and same-day shipping for Amazon standard orders, as well as Prime Now delivery windows of one hour and two hours, which he attributes to "more than 20 years of expanding our orders and our network logistics." Amazon will continue to offer "on an expedited basis" shipments for an additional fee, in addition to ongoing efforts to reduce overall shipping times for all products up to one day.

"We have already started in this direction," said Olsavsky. He pointed to the growing number of postal codes and the selection of products for a one – day delivery. (That would explain why the latest Amazon order from your intrepid journalist arrived at his Seattle delivery address in one day, despite the selection of "standard two-day delivery" at checkout.)

The guidance estimate from Amazon suggests that a default shipment of one day would result in increased revenue for the sale of products. Olsavsky emphasized this point by saying: "We have seen a good order trend in the past month," the current premium paid customers already enjoying benefits in various parts of the country. He did not suggest that premium subscription fees would increase further as a result of this expedition shipping upgrade, nor did it indicate the "amount". minimum order "required to enjoy this Prime benefit from one day.

Amazon's two-day premium subscription service launched in 2005 as a $ 79 / year warranty ensures that all Amazon orders will ship with a two-day free shipping. Over the past 14 years, the service has been associated with a litany of Amazon offers and two significant price declines, including the $ 119 / year jump from last year.

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