The Future is One-Day Prime Shipping
More and more retailers are implementing free two-day shipping to compete against the retail giant we know and love – Amazon. Fortunately for consumers, Amazon is planning to raise the bar by rolling out one-day shipping to Prime members.
In an April earnings call, Chief Financial Officer (CFO) Brian Olavsky, said the company is heavily investing in one-day Prime shipping. Although the retail giant currently offers Prime Now, which offers same day or one day delivery for select products, this service is limited to select cities. We all know Amazon has historically offered two-day shipping to its 100 million+ Prime members. However, implementing one-day shipping will become the new standard.
In a recent report from CNBC, Amazon can already ship to 72 percent of the United States population in a day. This, of course, means Amazon will continue to manage consumer expectations and stay ahead of retailers who just recently began implements two-day shipping.
What This Means For Consumers
Many questions come to mind with the future of one-day shipping. Will the price of Prime increase? How many more people will join Amazon Prime? Will consumers ever go into a physical store? How much more money will consumers spend on Amazon? Only time will tell, but from a consumer standpoint, they will get more of what they want when they want it.
Good News for Sellers
This is great news for sellers. This news presents sellers the opportunity to send their products into Fulfilled by Amazon (FBA). As consumers expect their products to be delivered quicker, sending into FBA is a strategic move that will be much cheaper than single day shipping through a third party. It will likely lead to more purchases on Amazon, meaning more sales for sellers. So go ahead and get some more inventory into the FBA warehouses ASAP!