The fastest and most convenient way of online shopping is set to get even quicker.
Amazon Prime is set to move away from two-day shipping in favour of a one-day shipping program.
With a budget of £620m, this project currently has no launch date but Amazon has said it expects to make “steady progress” throughout the year. Amazon’s Chief Financial Official Brian Olsavsky also told CNET “it will take us a significant amount of time to achieve”
Analysts believe these faster shipping speeds will provide an incentive for customers to join and maintain their subscription to Amazon Prime. Amid growing competition, Cathy Morrow Roberson founder of consulting firm Logistics Trends & Insights said: “Amazon is cranking it up a notch, trying to set themselves apart”.
While one-day delivery is already available in some parts of the UK, this update to Amazon Prime shipping is set to become standard in an extended range of locations.
New research has also suggested that the number of UK subscriptions to Amazon Prime is slowing. After an exponential growth period of nearly 400% between 2011 and 2018—bringing in approximately 4.2 million additional subscribers—Amazon is now expecting this number to drastically slow down, instead anticipating only 20% over the next four years.
This improvement to Amazon Prime shipping could prove as a tipping point for customers of competing media subscription services.