After Amazon (AMZN) announced its first-quarter earnings, it said that it will be spending $800 million during the second quarter to make free, one-day delivery standard for US Prime members.
On June 3, Amazon announced that over 10 million items are currently available for free, one-day shipping for its $119 a month membership. In the United States, Amazon had one-day and same-day shipments available in 10,000 markets as of the fourth quarter last year.
The company noted that one-day delivery is already ten times bigger than the two-day delivery was 14 years ago when it launched.
Amazon also said that it’s making one-day delivery possible by expanding its network in the United States, which now includes 110 fulfillment centers, 20 air gateways, 40 sortation centers, and 100 delivery stations.
Prime is a compelling offering
Amazon said that Prime members in the United Kingdom already see one-day delivery. Prime members in Japan see same-day delivery. However, developing networks to fulfill quick deliveries in these countries is easier since they’re much smaller.
Amazon’s free, one-day delivery will make its Prime membership even more compelling. Retailers like Walmart are scrambling to offer one-day shipping on a much smaller scale. Other retailers don’t offer an equivalent to Amazon’s Prime membership, which offers several benefits apart from free delivery.