Amazon Will Invest $800 Million In One-Day Shipping For Prime Members

In the wake of record-breaking Q1 profits, Amazon revealed in an earnings call that it will make one-day shipping the default standard for Prime members, replacing its current two-day shipping offer. Brian Olsavsky, Senior VP and CFO at Amazon, confirmed the e-Commerce giant plans to invest $800 million during Q2 to improve warehouses and delivery infrastructure as part of the changes.

Amazon already offers one-day and two-hour shipping to Prime members for certain products at an additional cost. But the change would significantly expand the number of products and zip codes eligible for free one-day shipping, Olsavsky said. There is no timeline for the complete rollout.

The pressure is now on Amazon’s major competitors again, specifically Walmart and Target, as well as other rivals like Best Buy, to match Amazon’s shipping and fulfillment strategies with their own investments. None of these companies have been shy about investing significant capital in fulfillment in recent years — and this spending has certainly paid off — but the increased spending requirements certainly…