Something to look forward to: In its first quarter 2019 earnings call, Amazon chief financial officer Brian Olsavsky revealed the company's plans to offer free one-day shipping as the default for Amazon Prime customers. Starting with North America, the service is set to expand globally.
On Thursday, Amazon reported its Q1 2019 earnings with a forecasted $800 million investment during the next quarter (Q2) in making free one-day delivery shipping the default for Prime members. The transition from free two-day to free one-day shipping will "open up a lot of potential purchases and a lot of convenience," Olsavsky told investors.
A Prime member is currently required to order at least $35 worth of eligible products for free one-day shipping, an option not available for all Prime items. The new program aims to offer one-day shipping of eligible items to all Prime members by default at no additional cost.
Considering the complex shipping logistics to enable this service, Amazon will expand it gradually rather than flip a switch to make it available for everyone at once. "We're already starting down this path," hints Olsavsky of this capability. "We've expanded the number of zip codes eligible for one-day shipping."
Amazon's existing options like one-day and same-day shipping for standard Amazon orders as well as Prime Now's Free 2-Hour Delivery were made possible thanks to "20-plus years of expanding our fulfillment and logistics network," says Olsavsky.
While the company already offers free one-day shipping to many Prime members in countries in the European Union, Buzzfeed News reports that the internet retailer aims to speed up deliveries in every country it operates. For a nationwide roll out, Amazon will use the US Postal Service and other transportation partners to make free one-day shipping the standard for Prime members.
More details of this plan are likely to surface in Q2 as the company further bolsters its shipping logistics with partners.
Update: The story was updated to reflect that the $800 million investment is a forecasted spend for Q2 2019. This is a guidance specific to Q2 2019 and not a total estimated spend. It's good to be Amazon.