The Ratings Game: Amazon’s move to one-day shipping shows the competition is catching up

Amazon.com Inc. is transitioning to free one-day shipping, faster than the previous two-day promise to Prime members, a move that analysts think indicates just how much the competition has accomplished in its efforts to catch up to the e-commerce giant.

Amazon’s AMZN, +2.54% Chief Financial Officer Brian Olsavsky announced the move to one-day shipping on the first-quarter earnings call, saying that the company had set aside $800 million to spend on the effort in the second quarter. The company will continue to offer same-day and Prime Now one-hour delivery as well.

“[W]hile our 20-year head start in investments in logistics and fulfillment capacity and partner networks that we’ve built are helping us, we also do have a network that is tuned to two-day delivery right now,” Olsavsky said, according to a FactSet transcript.

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