Amazon is making one-day shipping the standard for Prime members.
Chief Financial Officer Brian Olsavsky said on the company’s
In order to make the change, Amazon is expected to spend $800 million in the second quarter improving warehouses and delivery infrastructures, Olsavsky said. The investment will cut into Amazon’s profit margins, and the company gave lower-than-expected earnings guidance for the period. The change will first take place in the North American market, Olsavsky noted, but is designed to expand globally, across all countries that offer Prime memberships. Amazon said last year that it has over 100 million Prime members worldwide.
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