Amazon plans to deliver on promise of even faster shipping, calling it a success
If you thought Amazon’s packages were arriving faster than ever, just wait.
One-day delivery is now available to members of Amazon’s Prime expedited shipping and entertainment service for over 10 million items, “and we’re just getting started,” says Amazon CEO Jeff Bezos.
In announcing the company’s quarter, with $63.4 billion in revenue, he attributed the success to customer response to faster deliveries. “Customers are responding to Prime’s move to one-day delivery – we’ve received a lot of positive feedback and seen accelerating sales growth,” he said.
However, Amazon is paying dearly to improve its shipping. The company spent $800 million to get faster deliveries, and that played a part in the e-tailer slightly missing its estimates made to investors. Wall Street analysts had expected revenues of $67.2 billion.
Amazon is the dominant e-tailer, a market whose sales are expected to increase by 14% this year to reach $586.92 billion, or 10.7% of total US retail sales, according to market tracker eMarketer. That’s still a sliver of the total $5.4 trillion in total US retail sales.
Last week, Amazon staged its annual Prime Day July sale, which it said was the biggest sales day ever, surpassing the previous Black Friday and Cyber Monday combined, but it didn’t offer sales statistics.
The company, which has always historically been shy on offering numbers, beyond that it has over 100 million Prime members, did offer some insights on the Fire TV streaming stick device, which competes with Roku and Apple TV as a tool to bring Netflix and other channels onto TVs.
Fire TV now has more than 34 million active users worldwide, Amazon said, and is the No. 1 streaming media player family in the U.S., U.K., Germany, Japan, and India.