In April, Amazon announced that it was moving to make one-day shipping the default for its Prime members, a way to lift growth again. Brian Olsavsky, the company’s finance chief, said the offering had increased sales to Prime customers. The one-day offering lets Amazon get a bigger piece of consumers’ wallets on products typically bought at grocery stores or pharmacies. A typical order for items shipped in two days or more is $23.33, and Amazon spends $5.08 to fulfill and ship the items, according to a Morgan Stanley analysis. But for one-day shipping, the typical order is $8.32, and Amazon spends $10.59 to fulfill and ship it, meaning it loses money on many sales.

Source: New York Times October 24, 2019 20:14 UTC